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FINANCING,  CONSTRUCTING 
AND  MAINTAINING. 


FORMING  ONE  OF  THE  TWELVE  VOLUMES  OF  THE  REVISED  AND 
ENLARGED  EDITION  OF 

THE  SCIENCE  OF  RAILWAYS. 


BY 

MARSHALL  M.  KIRKMAN. 


FINANCING,  CONSTRUCTING  AND  MAINTAINING 

TREATS  OF  CAPITALIZATION,  LOCATION,   BUILDING  AND  MAINTAINING 
THE  ORGANIZATION  AND  PROPERTY  OF  RAILROADS  AND  THE  ECO- 
NOMIC QUESTIONS  SURROUNDING  THESE  SUBJECTS;  THE 
MAGNITUDE  OF  THE  INTERESTS  INVOLVED,  THEIR 
INTRICACY  AND  VAST  IMPORTANCE,  AND  THE 
INFLUENCES,   PURPOSES,  PRINCIPLES 
AND  METHODS  THAT  GOVERN. 


REVISED  AND  ENLARGED  EDITION  OF  1898. 


'"VOLUME"  m. 


NEW  YORK  AND  CHICAGO: 
THE  WORLD  RAILWAY  PUBLISHING  COMPANY. 


COPYRIGHT  BY 

THE  WORLD  RAILWAY  PUBLISHING  COMPANY, 

1894,  1895,  1896,  1898. 

Also  entered  at  Stationer's  Hn.ll,  London,  England. 
All  rights  reserved. 


J.  C.  Winshlp  Company,  Printers,  Chicago. 


T  F 

\A  <5 


TABLE   OF   CONTENTS. 


BOOK  I.— FINANCING. 

PAGE 

CHAPTER  I.     What  constitutes  money  and  the  effect  of  a 

debased  currency  upon  railways  and  other  property. 

Its  baleful  effect  upon  those  who  work  for  wages,  ...  7 
CHAPTER  II.  Basis  and  method  of  capitalizing  railroads,  28 
CHAPTER  III.  Capitalization  and  management.  Methods 

pursued  by  different  governments, 41 

CHAPTER  IV.  Influences  favorable  and  otherwise  on  the 

capitalization  of  railroads, 53 

CHAPTER  V.  Something  about  the  character  of  different 

kinds  of  securities, 59 

CHAPTER  VI.  So-called  "watered  stock," 72 

CHAPTER  VII.  Bailway  capital — investors  must  not  buy 
without  scrutinizing,  nor  hold  without  guarding,  .  .  79 

CHAPTER  VIII.  Different  kinds  of  shares;  returns  thereon; 
transfer  books,  etc.;  capital  stock  and  shareholders,  .  85 

CHAPTER  IX.     Details  of  railway  bonds,  leases,  etc.,  ...     92 

CHAPTER  X.     Particulars  of  sinking  funds, 101 

BOOK  II.    CONSTRUCTING  AND  MAINTAINING. 

CHAPTER  I.     Kailway  evolution, 109 

CHAPTER  II.    Eailway  construction, 123 

CHAPTER  III.     Methods  of  construction, 137 

CHAPTER  IV.  Particulars  of  construction — cost,  details 
thereof,  etc., 152 

CHAPTER  V.     Elements  of  construction, 167 

CHAPTER  VI.     Track.     Its  construction  and  evolution,  .     .  174 
(MI) 

178373  . 


IV  TABLE  OF  CONTENTS. 

PAGB 

CHAPTER  VII.  Construction,  maintenance  and  care  of  the 
roadway  and  track, 206 

CHAPTER  VIII.     Maintenance  of  track, 272 

CHAPTER  IX.  Track  details — snow  and  ice,  rails,  joints, 
spikes,  splice  bars,  plates,  alignment,  premiums  and 
other  matters, 301 

CHAPTER  X.  Use  of  wood  by  railways — its  preservatives 
and  substitutes — metal  ties,  etc., 348 

CHAPTER  XI.  Maintenance  and  operation — what  cost  is 
dependent  upon, 383 

CHAPTER  XII.     Maintenance — fixed  operating  expenses,      .  413 

CHAPER  XIII.  Maintenance — cost  of  operating  affected  by 
facilities, 427 

CHAPTER  XIV.  Maintenance — proper  basis  of  railway  tax- 
ation,   433 

CHAPTER  XV.  Maintenance — things  that  enter  into  the 
maintenance  of  a  railroad, 458 

APPENDIXES: 

Appendix  A.  Methods  of  capitalization  in  Great  Brit- 
ain,  487 

Appendix  B.  Relation  the  various  items  of  track  labor 
bear  to  each  other, 491 

Appendix  C.  Kelation  various  classes  of  maintenance 
bear  to  total  cost  of  maintenance, 492 

Appendix  D.  Percentage  of  the  total  cost  of  operating 
due  to  maintenance  of  organization  and  the  preven- 
tion of  the  destruction  of  the  property  from  natural 
causes,  ' 493 

Appendix  E.  Gauges  of  railroads  that  are  or  have  been 
in  use  in  different  countries, 494 

Appendix  F.     Quantity  of  material  required  to  lay  one 

mile  of  railroad  track  on  the  basis  named,     ....  495 
INDEX, 496 


BOOK  I. 

FINANCING. 


NOTE. — The  subjects  of  which  this  volume  treats  are  in- 
separably connected  with  others  relating  to  the  operation  of 
railroads,  but  only  the  more  salient  features  are  discussed  spe- 
cifically here.  They  will  be  found  referred  to  again  and  again 
throughout  the  work  in  connection  with  other  subjects.  In- 
deed, the  student  who  would  understand  any  particular  phase 
of  railway  operations  must  study  the  subject  of  railways  in  all 
its  parts.  He  may  never,  indeed,  be  able  to  compass  an  ex- 
haustive knowledge  of  every  department,  but  his  information 
will  be  sufficient  to  afford  the  side  light  which  an  understanding 
of  any  particular  department  requires. 


CHAPTER  I. 

WHAT  CONSTITUTES  MONEY,  AND  THE  EFFECT  OF  A 
DEBASED  CURRENCY  UPON  RAILWAYS  AND  OTHER 
PROPERTY  —  ITS  BALEFUL  EFFECT  UPON  THOSE 
WHO  WORK  FOR  WAGES. 

The  economic  conditions  which  a  government 
countenances  or  enforces  are  all-important  to 
railroads.  This  is  particularly  true  of  matters 
affecting  credits.  The  financial  standing  of  a 
nation,  the  character  of  its  people  and  their  dis- 
position to  conform  to  common  usage  in  matters 
of  business,  are  vital  matters.  The  building  of 
railroads  and  their  successful  operation  are  facil- 
itated or  embarrassed,  according  to  the  wisdom 
and  patriotism  of  those  who  manage  the  finances 
of  a  nation.  Thus  the  citizens  of  those  countries 
so  fortunate  as  to  be  blessed  with  a  stable  gov- 
ernment and  a  sound  currency  obtain  the  capital 
they  need  on  the  most  favorable  terms.  Those  so 
unhappy  as  to  have  a  weak  government  or  a 
debased  or  fluctuating  currency,  on  the  other 
hand,  are  universally  shunned  by  those  who  have 
money  to  lend.  And  by  money  is  meant  that 
which  the  great  commercial  nations  concur  in 
designating  as  such.  At  this  time  gold  only  is 
thus  recognized.  At  one  period  in  the  history  of 
men,  cattle  constituted  the  circulating  medium; 


8         FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  cow  was  the  unit  of  value.  Men  did  not  then 
speak  of  dollars  or  pounds,  but  of  cows.  After- 
ward sheep  constituted  the  circulating  medium, 
then  horses,  mules,  the  skins  of  animals,  and  so 
on.  As  men  progressed  In  wealth  and  intelligence 
and  became  more  settled  in  their  mode  of  life, 
copper,  bronze,  iron,  tin  and  lead,  and  finally,  sil- 
ver and  gold,  were  used  for  money.  The  change 
finally  to  gold  was  based  on  commercial  reasons, 
and  in  this  connection  it  cannot  be  too  strongly 
impressed  on  men's  minds,  that  what  shall  con- 
stitute money  (the  circulating  medium  of  the 
world)  is  never  a  matter  of  sentiment  or  tradi- 
tion, but  of  present  utility.  A^e  may  just  as  prop- 
erly mourn  over  the  abandonment  of  the  cow  as 
the  unit  of  value  as  to  mourn  over  the  loss  of 
silver  or  any  other  medium  of  circulation. 

What  shall  constitute  money  is  not  determined 
by  the  interests  or  prejudices  of  a  particular  in- 
dividual or  country.  Gold  is  the  standard  at  the 
present  time  because  it,  more  nearly  than  any 
other  thing,  answers  the  requirements  of  money 
as  regards  present  quantity,  yearly  supply,  bulk, 
quality  of  metal,  stability  of  value,  desirability 
as  property,  and  cost  of  production. 

Money  is  property  in  the  same  sense  that  a 
horse  or  a  piece  of  land  is  property,  and  must  be 
intrinsically  valuable  in  itself  and,  moreover,  a 
thing  generally  desired.  Superabundance  or  vio- 
lent fluctuations  attending  the  production  or  use 
of  a  thing  render  it  unfit  for  money.  It  was  never 
designed  to  be  used  to  pay  debts;  making  it  a  legal 


WHAT  CONSTITUTES  MONEY.  9 

tender  was  an  afterthought — a  business  device. 
Its  being  such  does  not  add  to  its  value.  If  made 
a  legal  tender  for  more  than  it  is  worth  as  prop- 
erty, it  is  made  a  device  to  rob  one  man  for  the  ben- 
efit of  another  and,  like  all  tlie  devices  of  rogues, 
loses  its  efficacy  as  soon  as  known,  reacting  finally 
and  disastrously  upon  those  who  seek  to  profit  by 
the  deceit. 

It  is  a  universal  law,  based  on  supply  and 
demand,  that  the  purchasing  power  of  money- 
decreases  if  the  quantity  in  circulation  is  in- 
creased disproportionately  to  the  needs  of  the 
world.  Reversely,  its  purchasing  power  is  in- 
creased if  the  relative  quantity  is  not  kept  up. 

It  costs  less  to  mine  gold  now  than  formerly. 
Production  has  also  increased  greater,  relatively, 
than  the  needs  of  the  community.  In  conse- 
quence it  will  not  buy  to-day  as  much  as  for- 
merly, as  is  evinced  in  the  rise  of  wages  and  the 
decrease  in  the  rate  of  interest. 

What  constitutes  money  varies  with  the 
changed  conditions  of  men.  Arrow  heads  and 
beads  answer  the  requirements  of  savages,  and 
for  them  constitute  the  highest  possible  form  of 
money.  But  as  savages  emerge  from  barbarism 
something  else  must  be  substituted.  In  this  way 
from  time  immemorial  that  which  constitutes 
money  has  been  changing  as  circumstances  and 
the  needs  of  men  have  changed. 

The  word  money  is  said  to  owe  its  origin  to 
the  fact  that  the  first  Roman  coins  were  struck 
in  the  temple  of  the  goddess  Juno  Moneta.  The 


10 


FIXAXCIXG,  COXSTR UCTING,  MAINTAINING . 


greatest  delusions  in  regard  to  what  constitutes 
money  occur  in  times  of  business  depression, 
when  men  lose  heart;  when  employment  is  diffi- 
cult to  get,  and  wages  are  low  and  trade  dull. 
Then  there  spring  up  in  every  direction  men  who 
demand  that  the  government  shall  bring  back 
the  prosperity  of  the  past  by  creating  money, 
forgetful  that  such  prosperity  is  as  unreal  as  a 
meal  made  upon  the  shadows  or  odors  of  real 
food. 

Money  originally  passed  between  man  and  man 
by  weight.  Coinage  (authoritatively  stamping 
the  value  of  the  coin  on  its  face)  was  a  later 
device,  designed  to  facilitate  easy  and  rapid  in- 
terchange. But  this  device  has,  from  the  start, 
been  more  or  less  used  as  a  means  of  defraud- 
ing the  community  by  putting  less  metal  into 
the  coin  than  the  actual  value  of  the  bullion  it 
contains. 

There  is  no  doubt  that  if  metals  passed  by 
weight,  many  of  the  misapprehensions  which 
arise  from  time  to  time  as  to  what  constitutes 
money  would  not  occur.  If,  to  illustrate,  we 
passed  from  hand  to  hand  the  number  of  ounces 
of  silver  which,  as  bullion,  can  be  bought  for  a 
dollar  in  gold,  men  would  be  cured  of  the  delu- 
sion that  the  government  stamp  makes  it  worth 
a  given  sum,  rather  than  the  amount  of  metal  it 
contains.  The  stamp  adds  nothing.  It  is  merely 
a  certification.  If  the  bullion  in  the  token  is  not 
worth  what  the  coin  is  stamped,  the  public  (if  the 
government's  credit  warrants)  may  accept  it  tern- 


WHAT  CONSTITUTES  MONEY.  11 

porarily  for  what  it  claims  to  represent,  in  the 
belief  that  the  government  will  ultimately  make 
it  good. 

From  time  immemorial  men  have  also  con- 
founded printed  slips  of  paper  (bills)  with  money. 
They  have  accepted  the  statement  of  govern- 
ments or  bankers  in  lieu  of  the  fact.  They  have 
forgotten  that  paper  tokens  are  of  value  only  so 
long  as  they  are  backed  up  by  real  money. 

In  connection  with  money  and  its  uses,  there 
will  always  be  more  or  less  incoherent  talk  about 
bimetallism.  Men  are  voluble,  and  speak  without 
investigation  or  reflection.  Bimetallism  means 
the  free  coinage  and  circulation,  simultaneously, 
of  two  kinds  of  metal.  Such  a  thing  is  clearly 
impossible,  either  by  international  agreement  or 
otherwise.* 

Without  free  coinage  and  free  circulation  and 
interchange,  bimetallism  is  a  misnomer,  and  it 
has  been  clearly  established  that  coins  of  different 
metals  will  not  circulate  side  by  side.  This 
fundamental  law  has  never  varied  in  a  single 
instance  during  the  thousand  and  odd  years  its 
operations  have  been  watched.  Its  workings  are 
based  on  natural  causes,  and  are  inevitable  and 
final.  They  are  thus  stated  by  Sir  Thomas 
Gresham,  Chief  of  the  British  Mint  in  the 

*Bimetallism  is  defined  as  "The  legal  obligation  of  a  national 
mint  to  coin  both  gold  and  silver  at  a  fixed  ratio  between  the 
two  metals,  coupled  with  a  law  giving  debtors  the  powef ,  unless 
prevented  by  special  contract,  to  satisfy  their  creditors  by  pay- 
ment in  either  of  the  metals  thus  coined." — American  Encylo- 
pedic  Dictionary. 


12       FINANCING,  CONSTRUCTING,  MAINTAINING. 

seventeenth  century:  "When  two  sorts  of  coin 
are  current  in  the  same  nation,  of  like  denom- 
ination, but  not  intrinsically  (that  is  to  say,  when 
they  have  not  the  same  value  relatively  in  the 
market),  that  which  has  the  least  value  will  be 
current;  the  other  will  be  hoarded,  melted  down 
or  exported."  Thus,  we  will  say,  if  silver  might 
be  coined  in  unlimited  quantities  (i.  e.,  if  free 
coinage  existed),  on  the  basis  of  sixteen  ounces 
of  silver  to  one  ounce  of  gold,  while  thirty-two 
ounces  of  silver  could  be  bought  for  one  ounce 
of  gold,  it  would  follow  that  gold  would  disappear 
and  silver  alone  become  the  circulating  medium. 
No  one  would  pay  out  a  dollar  in  gold  when  he 
could  take  it  and  buy  silver  bullion  out  of  which 
the  government  would  coin  for  him,  without 
charge,  two  silver  dollars,  each  of  which  was  a 
legal  tender.  The  ratio  of  silver  to  gold  has  con- 
stantly varied  in  the  experience  of  the  world. 
At  the  dawn  of  history^  silver  was  more  highly 
esteemed  than  gold.  It  is  said  to  have  been  the 
case  in  Arabia;  also  in  primitive  Germany. 
Strabo  speaks  of  gold  as  being  worth  twice  as 
much  as  silver.  It  is  said  that  silver  and  gold 
were  of  equal  value  in  Japan  in  the  sixteenth 
century.  In  the  time  of  Herodotus  (400  B.  C.) 
gold  was  worth  thirteen  times  the  value  of  silver 
in  Greece.  The  ratio  was  variable  among  the 
Romans— from  ten  to  one  to  twelve  to  one.  It  is 
said  to  have  been  nine  to  one  in  England  in  the 
time  of  Richard  Craur  de  Leon.  In  Spain  in  the 
thirteenth  century,  it  was  seven  and  a-half  to 


WHAT  CONSTITUTES  MONEY.  13 

one;  afterward,  at  the  close  of  this  century,  it  was 
changed  to  ten  and  three-quarters  to  one;  later 
on,  Portugal  being  for  the  moment  the  governing 
force  in  such  matters,  the  ratio  was  sixteen  to 
one.  From  this  it  will  be  seen  that  the  value  of 
silver  has  constantly  varied,  and  on  the  whole 
greatly  decreased.  Similar  fluctuations  in  the 
price  of  cows  foretold  in  early  days  their  down- 
fall as  money.  The  great  and  rapid  decline  in  the 
value  of  silver  is  due  to  several  causes,  which 
will  tend  to  still  further  cheapen  it.  Among 
these  causes  may  be  mentioned,  (and  I  name 
them  in  the  order  of  their  importance),  the  super- 
abundant supply  of  the  metal,  the  ease  and 
cheapness  with  which  it  may  be  mined  with  the 
aid  of  improved  machinery,  the  fact  that  the 
supply  of  gold  has  been  so  increased  as  to  meet 
the  wants  of  commerce,  and,  finally,  its  demone- 
tization by  all  great  nations. 

However  carefully  the  ratio  between  gold  and 
silver  may  be  fixed  (where  free  coinage  exists),  it 
cannot  be  maintained  except  for  the  moment. 
The  supply  of  the  two  metals  by  the  mines  will 
never  continue  for  any  length  of  time  to  be  rela- 
tively the  same.  Nor  will  the  demand  for  them 
be  the  same,  either  for  money  or  for  use  in  con- 
nection with  the  fine  arts.  Because  of  this  the 
ratio  will  constantly  be  disturbed,  and  as  soon  as 
this  occurs  the  metal  which  has  suffered  the 
greater  depreciation  will  be  used,  and  the  other 
hoarded  or  exported.  Bimetallism,  so  called,  is 
possible  only  where  the  less  valuable  coin, 


14       FINANCING,  CONSTRUCTING,  MAINTAINING. 

relatively,   is   supported   by  the   other  and  re- 
deemed in  it.* 

It  is  probable  that  silver  will  always  be  used 
more  or  less  by  every  nation.  But,  because  of 
its  greater  stability,  uniformity  of  production  and 
value,  gold  has  become  the  basis  of  circulation  of 
every  wisely  governed  country.  It  will  cease  to 
be  so  when  the  conditions  which  brought  it  about 
no  longer  exist.  I  speak  merely  of  the  present. 
That  is  always  sufficient.  Nor  is  it  material  to 
anyone  to  inquire  why  gold  became  the  accepted 
medium  of  circulation.  The  fact  is  enough. 
Economists  and  metallographists  may  trace  the 
causes  and  derive  pleasure  therefrom,  but  for 
others  the  question  is  too  subtle.  For  such  the 
verdict  of  the  commercial  and  financial  world 
(all  important  in  such  matters)  is  sufficient  and 
may  be  accepted  unhesitatingly.  But  sophists 
will  question  this  and  seek  to  lead  astray  the 
ignorant  and  unthinking,  on  the  plea  that  there 
are  exceptions  to  the  rule;  that  while  gold  may 
be  highly  adapted  to  the  selfish  interests  of  a 
rich  nation,  it  may  bear  very  heavily  on  a  poor 
country.  There  is  no  truth  whatever  in  such 
statements.  A  currency  good  for  the  rich  is 
doubly  good  for  the  poor.  Fortune  is  assured 

*  It  was  made  possible  in  the  United  States,  first,  because 
the  coinage  of  the  baser  metal,  silver,  was  restricted;  second, 
by  the  government's  acceptance  of  silver  in  payment  of  all 
debts  due  it,  and  third,  by  its  agreement  to  maintain  the  parity 
and  purchasing  power  of  the  two  metals,  so  far  as  coined. 
These  conditions  Avere  necessary,  as  the  silver  coins  were  not 
made  specifically  redeemable  in  gold. 


WHAT  CONSTITUTES  MONEY.  15 

to  the  rich  under  all  conditions,  but  it  is  im- 
possible to  the  poor  except  under  the  most 
favorable  circumstances,  among  which  is  a  stable 
currency. 

A  country  which  uses  paper  or  other  medium 
of  circulation  not  redeemable  at  sight  in  the 
recognized  money  of  the  world,  is  discredited, 
not  by  foreigners  alone,  but  by  its  own  people.* 
Men  will  not  invest  money  in  a  community  so 
debauched.  It  is  for  this  reason  that  the  capital- 
ists of  the  world,  including  those  of  the  United 
States,  avoid  investments  in  discredited  countries, 
although  their  natural  advantages  may  be  equal 
to  the  best  portions  of  the  world.  Venezuela 
may,  for  illustration,  be  cited  as  an  instance  in 
point.  Thus,  its  people  had  to  pay  ten  and  twelve 
per  cent,  interest  in  gold  (for  the  small  credit 
they  were  able  to  obtain),  while  British  Guiana, 
an  adjoining  country  not  so  rich  in  natural  re- 
sources, was  able  to  secure  all  it  needed  at  four 
per  cent.  The  same  misfortune  which  befell 
Venezuela  before  it  adopted  the  gold  standard 
would  befall  England,  the  United  States,  Ger- 
many or  any  other  country  that  should  disregard 
the  edict  of  the  commercial  and  financial  world 
in  such  a  matter. 

When  investments  are  made  by  foreign  capital 
in  a  country  financially  discredited,  burdensome 


*  It  is  as  if  a  merchant,  when  called  upon  to  pay  his  debts, 
should  offer  sheep  pelts  at  a  dollar  apiece,  in  lieu  of  money, 
when  everybody  knew  they  might  be  bought  in  the  market  for 
fifty  cents. 


1 6       FINANCING,  CONSTK UCTING,  MAIN TAIXIXK. 

guarantees  are  exacted.  Moreover,  the  rate  of 
interest  must  be  sufficient  to  enable  the  investor 
to  convert  the  return  he  receives  into  gold  and 
still  have  a  margin  of  profit  to  cover  the  wide 
fluctuations  which  always  attend  the  use  of  a 
debased  currency. 

The  fluctuations  of  silver,  no  longer  generally 
recognized  as  money  by  the  world,  illustrate  this 
last.  Thus  three  hundred  and  seventy-one  and 
one-quarter  grains  of  this  metal  in  1885  were 
worth  about  one  hundred  cents  in  gold;  in  1897 
they  were  only  worth  forty-eight  cents.  But  sil- 
ver is  only  one  of  many  forms  of  a  fluctuating 
and,  therefore,  a  debased  currency.  I  remember 
in  1860  the  circulating  medium  of  the  United 
States  consisted  of  paper  issued  by  private  banks, 
based  on  securities  such  as  town  bonds,  lands, 
stocks  and  such  other  collaterals  as  the  state 
officials  could  be  induced  to  accept  as  a  basis  of 
circulation.  The  bills,  not  being  redeemable  in 
gold,  were  quoted  just  as  stocks  and  bonds  are 
now,  and  carriers  were  compelled  to  notify  their 
agents  daily,  sometimes  several  times  a  day,  the 
price  at  which  they  should  receive  bills  of  the 
different  banks,  in  payment  for  tickets,  freights 
and  so  on;  thus  the  Southern  Bank  of  Tennessee 
would  be  accepted  to-day  at  sixty  cents,  and 
to-morrow  at  fifty  cents,  and  so  on.  Twenty 
years  afterward  I  found  in  the  vaults  of  a  rail- 
road company  a  package  two  feet  square,  tied 
with  rope,  which  was  at  first  thought  to  contain 
old  papers  and  accounts,  but  upon  investigation 


WHAT  CONSTITUTES  MONEY.  17 

was  found  to  consist  of  one,  two,  three,  five,  ten 
and  twenty  dollar  bills  of  the  banks  in  question 
(some  two  hundred  thousand  dollars  in  all)  which 
had  remained  in  the  possession  of  the  transporta- 
tion company  when  the  final  collapse  came.  All 
this  stuff  was  at  one  time  thought  to  be  real 
(instead  of  play)  money. 

The  issuance  of  paper  promises — bills— so-called 
money — "stuff" — based  on  the  faith  of  a  nation  or 
other  intangible  substance,  ever  has  many  advo- 
cates in  countries  and  communities  more  or  less 
in  debt.  In  the  United  States  such  money  is 
known  as  "  fiat  "  money.  It  is  no  more  money, 
however,  than  a  snow-flake  or  other  intangible 
or  worthless  substance  is  money.  To  write  on  a 
piece  of  paper  "  This  is  a  dollar"  does  not  make  it 
so.  Money  is  a  real  thing;  a  concrete  substance; 
property;  something  substantial,  permanent  and . 
that  does  not  fluctuate.  Something  that  man- 
kind treasures  a-s  having  intrinsic  worth  the  world 
over.  There  is  a  belief  more  or  less  general  in 
such  communities  as  I  refer  to,  that  governments 
may  make  money  just  as  mills  make  paper. 
However,  it  cannot  be  too  often  reiterated  that 
no  token  can  be  called  money  which  is  not  re- 
deemable in  what  the  world  designates  as  money. 
To-day  this  is  gold. 

Another  form  of  so-called  money  is  based  on 
the  belief  that  a  government  or  its  citizens  may 
take  a  certain  amount  of  metal  (to  be  bought  in 
the  market  for  a  certain  sum)  and  after  running 
it  through  the  mint  stamp  it  for  a  larger  sum. 

2    Vol.  3 


18       FINANCING,  CONSTRUCTING,  MAINTAINING. 

Phantom  tokens  of  this  kind  pass  at  par  only  so 
long  as  the  government  supports  them,  dollar  for 
dollar,  in  real  money.  The  practice  referred  to, 
however,  of  buying  bullion  at  one  price  and,  after 
coining  it,  issuing  it  at  another,  was  indulged  in 
by  the  United  States  for  several  years,  until  it 
had  piled  up  in  its  vaults  some  four  hundred 
and  sixty  millions  of  so-called  dollars.  The  peo- 
ple, because  of  the  high  credit  of  the  government, 
believed  these  silver  tokens  would  be  maintained 
on  a  gold  basis.  They,  therefore,  accepted  them 
at  their  purported  value.  Except  for  this  belief 
(which  would,  of  course,  have  been  dispelled  had 
free  coinage  been  permitted),  the  purchasing 
power  of  the  silver  tokens  would  only  have  been 
that  of  silver  bullion.* 

A  remarkable  idiosyncracy,  oftentimes  observ- 
able in  those  who  advocate  a  debased  form  of 
currency,  is  a  belief  that  the  more  there  is  of  such 
money  the  more  valuable  it  will  become.  This 
notwithstanding  the  experience  of  mankind 
proves  the  reverse  to  be  the  case.  It  is  a  delusion 
and,  like  all  delusions,  it  is  idle  to  combat  it. 
Experience  is  lost  upon  those  who  give  it  expres- 
sion. 


*  I  cannot  refrain  from  saying  here,  in  this  connection,  that 
whatever  the  financial  and  commercial  world  shall  fix  upon  as 
the  circulating  medium,  whether  it  be  gold  or  something  else, 
all  other  forms  of  currency  must  be  made  redeemable  therein, 
whether  they  take  the  shape  of  paper  or  other  device.  If  this 
fact  is  always  borne  in  mind  and  insisted  upon,  men  and  women 
can  never  go  astray  in  their  conclusions  as  to  what  constitutes 
money. 


WHAT  CONSTITUTES  MONEY.  19 

The  United  States  has  in  its  short  history 
sounded  all  the  depths  and  shoals  of  financial 
delusion.  Its  experience  affords  illustrations  of 
every  form  of  financial  heresy  which  has  afflicted 
men  since  they  emerged  from  savagery.  Those 
who  are  inclined  to  experiment  in  such  matters, 
or  to  accept  their  unaided  judgment  in  preference 
to  the  experience  of  mankind,  cannot  do  better 
than  study  the  financial  methods  of  the  United 
States.  The  subject  is  rendered  doubly  interest- 
ing by  the  fact  that  mankind  are  not  yet  through 
experimenting. 

A  currency  not  redeemable  at  sight  in  real 
money  occasions  Labor  peculiar  hardships,  for, 
while  wages  are  fixed  at  long  intervals,  the 
fluctuations  of  such  a  currency  are  of  hourly 
occurrence.  Thus  the  rate  of  wages  agreed  upon 
between  employer  and  employe  to-day  may  lose 
(indeed  is  quite  likely  to  lose)  a  part  of  its 
purchasing  power  before  the  question  can  be 
taken  up  again.  Moreover,  in  fixing  wages  em- 
ployers ever  contemplate  a  rise  in  the  value  of 
such  a  circulating  medium.  It  is  a  risk  they  must 
provide  for.  If,  therefore,  its  value  decreases 
rather  than  increases,  their  profit  is  further  aug- 
mented. Such  are  the  vicissitudes  of  a  debased 
currency.  But  no  matter  whether  its  value  goes 
up  or  down,  the  employer  is  bound  to  insure 
himself  against  loss.  He  would  be  unwise  not  to 
do  so. 

A  discredited  nation  pays  enormous  usury  for 
its  folly.  Benumbed  by  its  isolation  and  disgrace, 


20       FINANCING,  CONSTRUCTING,  MAINTAINING. 

it  quickly  becomes  an  outcast.  The  busy  world 
avoids  it,  as  men  avoid  a  hospital  in  which 
lepers  lie.  No  wise  man  will  associate  with  a 
dishonored  person.  It  is  the  same  with  nations. 
That  which  operates  to  injure  a  man,  operates 
similarly  with  communities.  A  country  which 
does  a  thing  the  world  designates  as  foolish  or 
dishonest,  courts  the  fate  of  the  fool  or  rogue.  It 
is  avoided,  and  although  its  citizens  may  cry  to 
passers-by,  "  We  have  something  which  it  is  very 
much  to  your  advantage  to  invest  in,"  they  are 
ignored  and  their  plea  disregarded.  For  it  is  the 
experience  of  mankind  that  he  who  deals  with  a 
fool  or  rogue  is  an  ass  who  endangers  his  capital 
and  risks  his  good  name.  No  inducement  of  gain 
is  sufficient  to  overcome  the  general  distrust. 
Such  a  country  is  shunned,  and  wisely,  just  as 
rogues  are  shunned. 

A  district  like  Turkestan  which  was  at  one  period 
separated  from  the  world  by  impassable  barriers, 
may,  so  long  as  thus  separated,  adopt  any  kind  of 
currency  it  pleases.  It  has  no  commerce.  But 
the  moment  it  buys  and  sells  in  other  countries  it 
must  adopt  their  form  of  money  or  suffer  the  dis- 
advantages that  follow.  A  country  having  rela- 
tions with  the  outside  world  must  adopt  the 
circulating  medium  of  the  world. 

The  discredit  which  attaches  to  a  country 
afflicted  with  a  fluctuating  currency  reacts  espe- 
cially and  disastrously,  as  I  have  pointed  out,  on 
those  of  its  people  who  work  for  wages.  Both 
the  area  of  their  usefulness  and  the  value  of  their 


WHAT  CONSTITUTES  MOXEY.  21 

services  are  reduced.  This,  because  great  busi- 
ness activity  can  only  be  secured  when  every 
advantage  is  present,  such  as  a  strong  govern- 
ment, the  confidence  of  the  financial  world  (at 
home  and  abroad),  abundance  of  capital  and  low 
rates  of  interest.  These  are  fundamental. 

Nor  do  wages  increase  as  the  value  (purchasing 
power)  of  the  circulating  medium  decreases. 
Directly  the  reverse.  In  1885  the  Mexican  silver 
dollar  was  at  par  with  gold.  In  1897  it  was  only 
worth  about  forty-eight  cents  in  gold.  Yet  the 
wages  paid  the  laborer  were  not  increased;  directly 
the  contrary.  But  everything  that  was  imported 
which  the  laborer  used  (or  once  used)  doubled  in 
price. 

A  nation  which  adopts  a  debased  currency 
multiplies  the  hardships  of  its  citizens  indefi- 
nitely. Thus,  the  withdrawal  of  capital,  local  and 
foreign,  which  the  loss  of  confidence  that  follows 
involves,  causes  industries  of  all  kinds  to  shrink, 
prevents  the  introduction  of  new  enterprises  and 
destroys  others  which,  except  for  this,  would  be 
carried  on  successfully.  The  result  is  a  corre- 
sponding falling  off  in  the  demand  for  labor. 
This  throws  many  out  of  employment,  and  the 
sharp  competition  that  follows  for  the  work 
which  is  left  ends  in  lessening  the  compensation 
of  those  who  find  something  to  do. 

Where  a  fluctuating  currency  exists,  capital, 
in  order  to  insure  itself  against  the  risk  it  runs, 
exacts  usurious  returns,  and  in  estimating  its 
risks  a  wide  margin  is  taken.  It  demands  in 


22       FINANCING,  CONSTRUCTING,  MAINTAINING. 

every  case  special  guaranties  and  exacting  con- 
cessions, if  the  prospect  of  enormous  gain  is  not 
apparent.  Enterprise  in  every  direction  is  bur- 
dened. The  risks  investors  are  willing  to  take  in 
more  favored  countries  the  borrower,  under  such 
circumstances,  must  assume.  The  lender  must 
be  assured  that  the  tokens  he  is  to  receive  will 
net  such  a  sum  that,  when  converted  into  gold, 
will  pay  double,  perhaps  treble,  what  he  would 
ask  if  the  currency  of  the  country  conformed  to 
that  of  the  commercial  nations  of  the  world. 
That  is  what  loose  methods  of  business  and  loss 
of  credit  cost  a  community. 

And  further,  it  may  be  said,  to  illustrate  this 
thought,  railway  employes  who  receive  their 
wages  in  gold  (or  its  equivalent)  could  not  expect 
a  like  amount — in  value — in  silver,  in  the  event 
free  coinage  of  the  latter  were  permitted  on  a 
basis  disproportionate  to  gold,  so  long  as  the  lat- 
ter is  the  recognized  money  of  the  world.  No. 
A  man  who  got  forty  dollars  a  month  might  for 
a  time  not  have  his  wages  decreased,  further 
than  that  the  forty  dollars  would  be  depreciated 
dollars  instead  of  good  dollars.  But  this  could 
not  be  if  his  wages  were  to  procure  for  himself 
or  his  family  what  they  bought  before  in  gold. 
But  pleas  of  this  kind  would  avail  him  nothing. 
To  enable  railroad  companies  to  keep  up  the 
wages  of  their  employes  to  the  gold  standard, 
they  would  have  to  increase  correspondingly 
their  business  or  rates.  Thus,  if  in  a  change  from 
gold  to  silver,  the  latter  were  worth  relatively 


WHAT  CONSTITUTES  MONEY.  23 

only  half  its  face  in  gold,  either  the  business 
or  the  rates  would  have  to  be  doubled.  But 
is  it  likely  a  community  would  permit  an  in- 
crease of  rates?  Even  if  it  did,  the  shrinkage 
in  the  business  of  the  country  which  would  fol- 
low loss  of  credit  in  the  financial  world  would  so 
lessen  the  revenues  of  railroads  as  to  render  it 
utterly  impossible  for  them  to  keep  up  the  wages 
of  employes  to  the  former  gold  standard.  This 
would  be  equally  true  of  employers  in  other 
branches  of  trade. 

In  nearly  every  country  it  is  the  margin 
afforded  by  foreign  capital  which  supplies  the 
means  for  extending  old  improvements  and 
developing  new  ones.  Without  such  capital,  the 
enterprises  they  foster  would  not  exist,  and  to 
the  extent  that  this  was  so,  the  construction 
of  railroads,  and  the  opening  of  manufactories, 
mines  and  other  sources  of  industry  would  lan- 
guish. And  if  it  should  occur  that,  through 
unwise  legislation  or  otherwise,  the  credit  of  the 
United  States  (or  indeed  of  any  stable  country) 
should  be  impaired,  the  truth  of  what  I  say 
would  quickly  make  itself  apparent  in  the  gen- 
eral falling  off  in  business  which  would  ensue. 
This  shrinkage  would  throw  many  out  of  em- 
ployment, and  in  the  struggle  of  the  idle  to 
secure  work  they  would,  as  already  intimated, 
be  led  through  their  necessities  to  underbid  those 
who  had  employment.  Thus  wages  would  be 
pulled  down  again  and  again  in  the  struggle, 
until  they  barely  sufficed  to  enable  men  to  live, 


24       FINANCING,  CONSTRUCTING,  MAINTAINING. 

While  this  would  be  true  in  regard  to  wages,  it 
would  not  be  the  same  in  the  case  of  food  and 
clothing.  The  market  of  the  world  fixes  the 
price  of  bread  products  as  it  does  of  wool  and 
cotton.  If  the  price  of  wheat  were  fifty  cents  a 
bushel  in  gold,  it  would  be  twice  that  in  silver, 
on  the  basis  of  the  value  of  silver  in  1897.  So 
that  the  workman  who  got  his  flour  for  two  dol- 
lars and  a  half  in  gold  would  have  to  pay  five 
dollars  for  it  in  silver.  The  price  would  advance 
in  the  same  way  for  woolen  and  cotton  garments. 
Thus,  while  he  received  in  silver  only  what  he 
might  have  received,  under  a  stable  government, 
in  gold,  his  necessities  would  cost  him  twice  as 
much.  This  is  what  cheap  or  plentiful  money, 
so-called,  means  to  those  who  work  for  wages. 
The  picture  is  the  experience  of  men,  the  fate 
which  overtakes  the  poor  in  every  country  where 
a  debased  currency  is  permitted. 

They  are  grievously  misled  who  believe  that  a 
country  can  ever  be  benefited  by  adopting  an 
unstable  currency.  Those  who  owe  money  on 
farms,  homesteads,  and  other  property,  not  easily 
and  quickly  convertible,  like  wheat,  would  under 
such  circumstances,  instead  of  finding  relief,  be 
glad,  in  the  majority  of  cases,  to  let  the  lender 
take  the  property  for  the  amount  of  his  debt. 
For  with  departing  prosperity  would  vanish  the 
resources  with  which  the  debtor  expected  to  pay. 
With  shrinkage  of  business  and  consequent  loss 
of  prosperity,  the  value  of  farms,  homesteads, 
and  all  other  property  of  that  nature,  would 


WHAT  CONSTITUTES  MONEY.  25 

shrink  correspondingly.  There  would  be  no  sur- 
plus or  speculative  capital,  and  in  consequence, 
demand  would  fall  off  so  that  a  property  or  busi- 
ness which  might  be  worth  two  thousand  dollars 
when  the  credit  of  a  country  stood  high,  might 
not  be  worth  half  that  sum  in  debased  money,  in 
a  discredited  country.  Under  such  conditions,  a 
farmer  or  land  owner  who  might  receive  twice 
as  much  for  his  produce  in  debased  money  as  he 
would  in  gold,  and  might  use  such  money  to  pay 
his  debts  and  thereby  greatly  facilitate  such  pay- 
ment, would  lose  in  the  end,  because  everything 
he  had  which  did  not  have  a  world-wide  market, 
like  wheat,  would  be  cut  in  two  again  and  again 
in  value,  as  the  credit  of  his  country  sank  lower 
and  lower  in  the  estimation  of  the  honest  people 
of  the  world. 

It  is  unavoidable  that  enormous  losses  should 
ever  attend  a  change  from  a  stable  to  an  unstable 
currency.  They  will  be  caused  by  a  variety  of 
reasons.  But  immediately  and  directly  by  the 
disappearance  of  real  money,  by  loss  of  credit  at 
home  and  abroad,  by  the  withdrawal  of  local  and 
foreign  capital  which  will  follow,  by  readjustment 
of  values  on  extreme  lines;  and  finally  in  new 
countries,  like  the  United  States,  by  a  cessation  of 
emigration,  for  men  will  not  emigrate  to  a  coun- 
try which  is  financially  dishonored.  Notwith- 
standing the  experience  of  mankind,  however,  in 
this  respect,  there  are,  in  every  country,  more  or 
less  sincere  but  misinformed  people  who  believe 
that  in  some  way  they  will  be  benefited  by  a 


26       FINANCING,  CONSTRUCTING,  MAINTAINING. 

debased  currency;  that  money  will  be  easier 
under  such  circumstances.  It  is  enough  to  say 
that  in  such  a  country  there  is  little  call  for 
money  of  any  kind.  But  to  those  who  believe 
that  borrowers  will  be  benefited  by  such  a  state 
of  affairs,  it  is  enough  to  point  out  that  when 
money  may  be  freely  borrowed  in  London  and 
Amsterdam  at  three  per  cent,  on  approved  securi- 
ties, from  twenty  to  twenty-five  per  cent,  is  asked 
by  the  same  men  for  loans  placed  in  discredited 
countries.  In  other  words,  while  capitalists 
gladly  lend  their  money  at  three  per  cent,  (or  cur- 
rent rates),  to  those  worthy  of  trust,  they  charge 
discredited  people  from  twenty  to  twenty-five  per 
cent.  And  furthermore,  it  is  only  in  exceptional 
cases,  and  under  peculiar  and  harassing  guaran- 
ties, be  it  remembered,  that  the  latter  can  obtain 
money  at  all.  Where  others  have  but  to  ask,  they 
must  implore,  supplicate,  pawn  all  they  have. 

A  debased  currency  is  the  most  destructive 
device  ever  invented  by  man  to  oppress  those  who 
borrow,  as  well  as  those  who  work  for  wages. 
And  as  all  the  nations  of  the  world  but  two  or 
three  are  borrowers,  and  all  mankind,  save  a 
favored  few,  are  workers,  the  measure  of  hard- 
ship such  a  condition  of  affairs  entails,  words  can- 
not depict  nor  imagination  paint.  And  in  the 
case  of  railroads  (the  index  of  every  kind  of  pros- 
perity in  our  day),  nothing  more  effective,  it  may 
be  said,  could  be  invented  for  lowering  the  social 
.status  of  employes,  or  be  more  effective  in  prevent- 
ing the  building  of  new  lines,  or  the  improvement 


WHA  T  CONSTITUTES  MONEY.  27 

or  extension  of  old  ones,  than  a  debased  currency. 
Let  us  hope  that  the  unhappy  conditions  I  have 
pointed  out  may  never  arise  in  the  United  States, 
nor  indeed  in  any  country  where  this  will  be  read, 
but  however  that  may  be,  their  discussion  forms 
a  fit  corollary  of  the  subject  of  Railway  Finance. 


CHAPTER  II. 

BASIS    AND     METHOD     OF     CAPITALIZING     RAILROADS. 

The  risks  that  attend  the  investment  of  capital 
in  new  railroads  or  the  improvement  of  old  ones, 
where  the  return  is  doubtful,  enforce  abnormal 
rates  of  interest.  The  discount  suffered  will  de- 
pend on  the  plentifulness  of  money  and  the  prob- 
able productiveness  of  the  property,  the  latter 
being  underestimated  rather  than  overestimated. 
When  money  is  scarce  or  the  security  doubtful, 
the  rate  of  interest  will  be  high  and  the  price  the 
securities  will  bring  will  be  low. 

The  influences  that  affect  the  capitalization  of 
railways  are  very  imperfectly  understood,  and 
the  methods  that  it  is  necessary  to  follow  in  order 
to  secure  the  money  needed  in  the  construction 
of  these  enterprises  have  been  severely  and  un- 
justly criticised.  This  criticism,  however,  is  not 
confined  to  any  particular  country.  It  is  the 
common  theme  of  idealists  and  ignorant  men 
everywhere.  The  practical  realities  of  life  never 
conform  to  the  illusions  of  such  people.  They 
approach  a  business  proposition  in  the  spirit  that 
a  child  does  the  construction  of  a  blockhouse,  or 
a  mathematician  anticipates  the  solution  of  a 
problem  wherein  the  processes  are  preconceived 


BASIS  AND  METHOD  OF  CAPITALIZING.  29 

and  the  result  certain.  The  necessities  of  busi- 
ness and  the  compromises  of  conflicting  interests 
they  know  nothing  about,  and  do  not  therefore 
regard.  Different  circumstances  and  surround- 
ings are  as  if  they  were  not;  and  the  peculiarities 
of  men  and  the  requirements  of  capital  cut  no 
figure  in  their  child  world.  It  is  their  happy  for- 
tune to  be  always  superior  to  facts.  They  live  in 
a  world  quite  apart,  where  men  are  not  led  to 
achieve  results  because  of  a  love  of  money,  but 
are  animated  by  a  lofty  public  spirit;  a  world 
wherein  mankind  labor  for  the  public  good  while 
their  children  starve.  This  class  comprises  a 
very  large  number.  It  looks  upon  itself  as  the 
public  guardian.  To  it  the  acquisition  of  wealth 
in  railroads  is,  as  a  rule,  treated  as  a  misfortune, 
not  a  thing  in  which  the  people  share.  It  speaks 
of  railway  corporations  indifferently  as  extor- 
tionists, and  of  railway  managers  as  robbers. 
It  does  not  recognize  that  owners  have  either 
wisdom  or  honesty,  and  is  generally  a  warm  ad- 
vocate of  public  interference  and  supervision. 

Generally  speaking,  the  capitalization  of  rail- 
ways represents  their  cost;  neither  more  nor  less. 
It  includes  commissions  paid,  interest  during  the 
period  of  construction,  and  discount  suffered  on 
the  securities  sold.  If  the  credit  of  a  company  is 
such  as  to  enable  it  to  sell  its  securities  at  a  pre- 
mium, the  amount  realized  goes  to  reduce  capital. 

Cost  per  mile  varies  greatly  upon  different 
roads.  The  extent  of  a  property,  it  is  apparent, 
depends  on  the  traffic  to  be  handled.  Cost  is 


30       FINANCING,  CONSTRUCTING,  MAINTAINING. 

especially  affected  by  alignment,  grades,  labor, 
equipment,  and  right  of  way.  Many  items  are 
affected  by  the  nearness  or  remoteness  of  mar- 
kets. How  far,  if  at  all,  a  company  may  issue 
shares  (to  its  owners)  at  par  to  cover  construction 
work,  when  such  shares  command  a  premium,  is 
a  subject  about  which  men  differ.  In  some  cases 
the  practice  is  forbidden  by  law. 

The  increase  of  capital  per  mile  of  road  since 
the  inauguration  of  railways  has  been  much 
greater  in  England  than  elsewhere.  This  is  due 
partly  to  outlays  for  facilities  at  terminals,  and 
partly  to  investments  in  collateral  enterprises. 
The  comparatively  small  increase  in  the  United 
States  is  owing,  in  a  measure,  to  the  fact  that 
much  of  the  construction  work  has  been  paid  for 
out  of  earnings  not  yet  capitalized;  in  other 
words,  profits  instead  of  being  divided  in  full 
among  owners,  in  the  shape  of  dividends,  have 
been  used  to  make  improvements. 

The  basis  of  capitalization  of  railways  is  cost. 
If  America  has  departed  from  this  rule,  it  has 
been  on  the  safe  side;  on  the  side  of  reduced 
capitalization.  Of  this  there  can  be  no  doubt, 
theories  and  general  impressions  to  the  contrary 
notwithstanding. 

In  reference  to  the  methods  of  raising  money 
for  the  construction  of  railway  properties,  they 
vary  greatly.  Railways  are,  however,  coming 
more  and  more  to  be  built  under  the  supervision 
of  companies  already  established.  These  latter 
are  in  such  cases  guarantors.  In  many  instances 


BASIS  AXD  METHOD  OF  CAPITALIZING,  31 

they  issue  their  own  securities,  hypothecating 
those  of  the  new  enterprises.  Thus  the  latter 
receive  the  benefit  of  the  credit  of  the  established 
company. 

The  importance  to  be  attached  to  estimates  of 
the  cost  of  railroads  to  be  built,  and  their  proba- 
ble productiveness  afterward,  depend  upon  the 
character  and  experience  of  the  men  making 
them.  It  is  not  an  unusual  thing  for  cost  to 
double  or  treble  the  estimates.  Investors  should, 
therefore,  scrutinize  the  character  and  practical 
knowledge  of  men  back  of  every  railway  enter- 
prise. 

To  be  of  value,  estimates  of  cost  must  be  made 
by  capable  engineers.  Abundance  of  time  must 
be  taken.  Men  of  different  experience  are  re- 
quired to  forecast  the  future  of  properties.  Both 
may  be  done  with  reasonable  accuracy,  but  the 
many  instances  in  which  estimates  of  cost  and 
forecasts  of  business  have  proven  delusive  should 
teach  those  having  money  to  invest  in  enter- 
prises of  this  character  to  exercise  care. 

The  value  of  the  securities  of  prospective  rail- 
ways, unless  guaranteed  by  a  stable  concern,  is 
always  more  or  less  a  question  of  doubt.  Such 
properties  are  largely  speculative,  and  like  all 
speculative  enterprises  must  be  liberally  dis- 
counted. They  do  not  come  within  the  domain 
of  those  who  cannot  risk  the  loss  of  a  part  or  the 
whole  of  their  capital.  They  afford  a  field  only 
for  capitalists  who  are  able  to  assume  such  risks. 
The  risk  in  the  United  States  may  be  seen  in  the 


32       FINANCING,  CONSTRUCTING,  MAINTAINING. 

number  and  character  of  railroads  which  have 
passed  through  the  hands  of  receivers.  The  pro- 
moters who,  by  specious  arguments  and  false 
representations,  have  induced  the  people  of  Eu- 
rope to  invest  in  worthless  railway  securities  in 
the  United  States,  can  hardly  be  counted.  The 
result  has  been  highly  disastrous  to  the  credit  of 
the  country  and  a  great  injustice  to  the  people 
who  have  placed  confidence  in  their  statements. 
During  the  early  history  of  railroads  little  was 
written  about  them  by  practical  railroad  men. 
Theorists  occupied  the  field.  A  few  phases  of 
railway  operation,  such  as  pools  and  accidents, 
they  grasped.  However,  they  have  never  been 
content  to  confine  themselves  to  subjects  they 
understand.  They  believe  themselves  to  be  cos- 
mopolitan— each  has  his  theme;  each  his  partic- 
ular subject.  He  sees  in  it,  however,  the  all  in 
all  of  railway  life.  One  finds  it  in  heightened 
facilities;  another  in  the  abolition  of  class  privi- 
leges; another  in  better  protection  of  life;  an- 
other in  lower  charges;  another  in  more  stable 
tariffs;  another  in  the  abolition  of  all  traffic  dis- 
tinctions; another  in  the  abolishment  of  passes; 
another  in  government  supervision;  another  in 
government  ownership;  another  in  the  enforce- 
ment of  agreements  between  railroad  companies; 
another  in  restricted  railway  construction;  an- 
other in  prevention  of  fictitious  capital;  another 
in  securing  more  adequate  returns  and  accounts; 
another  in  better  management;  another  in  pre- 
vention of  speculative  tendencies  on  the  part  of 


BASIS  AND  METHOD  OF  CAPITALIZING.  33 

owners;  another  in  greater  interest  in  the  wel- 
fare of  railway  employes;  another  in  curbing  the 
prejudices  and  passions  of  the  people;  another 
in  preventing  hasty  and  inconsiderate  legisla- 
tion. The  subject  is  an  endless  one.  Each 
writer  pursues  his  theme  with  fervor  amidst  the 
acclaim  of  friends  and  ignorant  lookers-on.  All 
these  writers  are,  in  the  main,  honest;  all  are 
fully  assured  of  the  efficacy  of  their  panacea; 
each  believes  it  to  be  the  one  thing  necessary. 
In  the  generality  of  cases  the  views  they  express 
are  empirical.  They  take  no  account  of  "natural 
progress  and  evolution,  or  the  practical  habits 
and  needs  of  men. 

Every  evil  in  railway  administration  contains 
within  itself  its  own  cure.  When  the  cure  is 
thus  effected,  it  is  equitable  and  lasting.  Rail- 
way critics  will  not,  however,  await  this  slow 
and  beneficent  process. 

The  capitalization  of  railway  property  has 
always  been  a  favorite  theme  with  writers  and 
speakers.  It  has  not  been  necessary  for  them  to 
know  anything  definitely  about  the  subject. 
They  have  had  simply  to  cry  injustice,  fraud, 
wrong. 

Notwithstanding  this  and  the  current  belief 
of  many,  capitalization  of  railway  property  in 
America  and  elsewhere  is  based  on  equitable 
grounds.  The  exceptions  are  few  and  unworthy 
of  notice.  But  the  methods  of  owners  in  regard 
to  capitalization  are  not  uniform,  any  more  than 
they  are  uniform  in  other  things.  Thus,  the 

3    Vol.   3 


34       FINANCING,  CONSTRUCTING,  MAINTAINING. 

owners  of  railroads  differ  widely  in  regard  to 
the  disposition  they  make  of  surplus  revenue. 
In  Europe  it  has  been  the  rule  to  divide  it  among 
the  proprietors  to  the  last  farthing,  every  cent 
spent  for  construction  being  capitalized.  In  the 
United  States  it  has  been  a  very  general  custom 
of  railway  companies  to  put  a  portion  of  their 
net  earnings  into  needed  additions  and  improve- 
ments. In  some  cases  this  is  capitalized  after- 
ward, but  more  often  not.  Such  use  of  a  com- 
pany's surplus  is,  however,  always  in  the  nature 
of  a  loa*n.  In  making  it,  the  owners  clearly  do 
not  relinquish  the  right  to  capitalize  it  whenever 
their  interests  will  be  benefited  thereby.  Loose 
and  ignorant  writers  sweepingly  designate  in- 
creases of  capital  of  this  kind  as  watered  stock. 
This  is  wrong  from  every  point  of  view,  but  its 
immediate  effect  is  to  injure  the  owners  of  rail- 
ways in  the  minds  of  the  public.  They  are 
blamed  for  benefits  conferred  on  the  commu- 
nity. This  suggests  the  need,  in  the  United 
States,  of  a  self-respecting  class  which  will  frown 
down  unwarranted  criticism  of  railroad  corpora- 
tions with  the  same  spirit  that  they  would  con- 
demn efforts  to  destroy  the  credit  of  merchants, 
manufacturers  and  banks.  The  result  is  equally 
bad. 

The  era  of  railway  construction  has  been  one 
of  change;  of  financial  evolution;  of  periods  of 
great  prosperity,  followed  by  distressing  reverses. 
It  is  the  same  with  these  properties  as  with  other 
great  interests.  Whenever  more  money  is  put 


BASIS  AND  METHOD  OF  CAPITALIZING.  35 

into  them  than  the  community  can  spare,  or  it  is 
unwisely  placed,  reaction  follows,  as  in  the  case 
of  overinvestment  or  unproductive  outlay  else- 
where. 

The  cost  of  railway  construction  in  the  United 
States  for  the  twenty-five  years  from  1870  to  1895, 
about  equals  the  savings  of  the  people  from 
reduced  rates  during  that  period.  The  added 
facilities  were  constructed  out  of  profits  saved  to 
the  community.  "Had  the  actual  quantity  of 
merchandise  moved  by  the  railroads  in  the  year 
1880  been  subjected  to  the  average  rate  per  ton 
per  mile  which  was  charged  from  1866  to  1869, 
inclusive,  the  difference  would  have  amounted  to 
at  least  five  hundred  millions  of  dollars,  and  per- 
haps eight  hundred  millions  of  dollars,  more  than 
the  actual  charge  of  1880."* 

Political  economists  are  not  agreed  as  to  the 
ratio  the  capital  of  a  railway  should  bear  to  gross 
earnings.  It  has  been  stated  that  it  should  not 
exceed  ten  times  the  yearly  receipts.f  Estimates 
of  this  kind  are  unprofitable.  The  cost  of  operat- 
ing, quite  as  much  as  earnings,  determines  the 

*  Edward  Atkinson,  "The  Distribution  of  Products."  The 
reduction  in  rates  in  New  York  for  1883,  as  compared  with  the 
rates  of  1870,  amounted  to  $74,549,000,  and  in  Ohio  to  $89,400,000. 
It  is  estimated  that  the  reduction  of  rates  (i.  e.,  the  amount 
saved  to  the  people)  in  the  year  1883  for  the  country  at  large 
amounted  to  $400,000,000.  M.  M.  K. 

f  "It  has  been  held  by  high  financial  authorities  that,  in 
order  to  be  a  commercial  success,  a  railway  should  not  cost 
more  than  ten  times  the  amount  of  its  yearly  traffic;  or  in 
other  words,  the  annual  traffic  should  be  10  per  cent,  of  its 
capital  cost." — J.  S.  Jeans,  "Railway  Problems,"  page  25. 


36       FINANCING,  CONSTRUCTING,  MAINTAINING. 

percentage  of  profit.  So  long  as  it  costs  in  one 
case  fifty  per  cent,  of  gross  earnings,  and  in 
another  seventy  per  cent.,  to  operate  a  property, 
it  is  apparent  that  no  uniform  standard  of  capi- 
talization based  on  gross  earnings  is  possible.  On 
the  other  hand,  it  is  a  safe  statement  to  make  to 
say  that  a  property  should  not  be  capitalized 
beyond  a  moderate  return  on  its  business.  Cost 
should  be  restricted  as  much  as  possible  consist- 
ently with  the  object  the  property  is  intended  to 
serve. 

The  excessive  cost  of  operating  the  English 
roads  consequent  upon  their  prodigal  outlay  for 
safety  appliances  is  said  to  seriously  cripple 
England's  internal  industries,  rates  being  so  high 
in  many  cases  as  to  prevent  competition  with 
more  favored  localities.  It  has  been  claimed  that 
the  low  rates  of  American  railways  will  ultimately 
drive  the  interior  manufacturers  of  England  out 
of  the  market  if  their  carriers  do  not  find  a 
way  to  reduce  rates. 

America  is  indebted  for  her  low  rates  to  free 
railway  construction  and  active  competition. 
England  has  not  been  subjected  to  the  stimulat- 
ing effect  of  the  former. 

The  elaborate  safety  devices  of  English  roads 
have  added  much  both  to  cost  of  construction 
and  working.  The  hypothetical  safeguards  there 
thrown  around  life  have  grievously  burdened  the 
country  at  large;  they  have  made  the  cost  of  food 
and  clothing  dear  in  order  that  the  careless  mem- 
bers of  the  community  may  not  be  run  over. 


BASIS  AND  METHOD  OF  CAPITALIZING.  37 

They  have  denied  the  poor  many  necessities  and 
comforts  of  life  in  order  that  the  absent  minded, 
the  tramp  and  the  drunkard  might  be  safe.  This 
is  an  extreme  way  to  state  the  case,  but  it  is 
true. 

It  is  fashionable  to  claim  that  every  safety 
device  introduced  is  a  gain — a  step  forward.  This 
is  a  superficial  way  of  viewing  it.  Practically 
every  safety  device  which  adds  to  the  cost  of 
doing  business  (over  and  above  what  the  device 
saves)  is  a  perpetual  tax  on  the  community,  like 
money  sunk  in  any  other  enterprise*  which  does 
not  yield  a  return.  It  is  in  matters  of  this  kind 
that  the  practical  common  sense  of  business  men 
is  a  safer  guide  than  the  theories  of  the  engineer 
or  publicist.  The  business  man  provides  only 
when  the  urgency  is  great;  when  the  time  is  ripe. 
Others  provide  wherever  necessary  to  theoretical 
perfection.  In  the  case  of  the  engineer,  perfec- 
tion is  a  part  of  his  education  and  necessary  to 
substantiate  his  skill  and  reputation.  He  is  a 
magnificent  idealist.  Nor  do  governments  or 
communities  stop  to  think  of  such  outlays.  They 
simply  see  that  a  safeguard  is  missing.  The  hard- 
ships that  injudicious  expenditures  of  money  in 
its  attainment  will  entail,  the  industries  it  will 
prevent,  the  heightened  cost  of  food  and  clothes 
it  will  precipitate,  they  do  not  for  a  moment 
consider. 

The  disposition  to  sink  money  in  romantic 
efforts  to  save  life  in  connection  with  railroads, 
which  are  not  deemed  necessary  in  connection 


38       FINANCING,  CONSTRUCTING,  MAINTAINING. 

with  our  common  highways,  has  always  struck 
me  as  the  acme  of  folly.  Thus  the  block  system 
has  been  made  compulsory  in  many  countries.  It 
pleases  the  idealist  but  strikes  more  practical 
men  with  a  chill,  because  it  greatly  increases  cost 
and  thereby  decreases  facilities.  It  absorbs 
money  needed  for  more  necessary  things.  Instead 
of  making  the  roads  that  are  little  used  conform 
to  the  block  system,  a  reduction  in  speed  of  trains 
should  have  been  prescribed  and  other  devices  of 
a  simple  and  practical  nature  introduced,  but 
uniformity  would  not  have  been  attained  and  the 
dramatic  effect  governments  seek  would  have 
been  lost. 

The  safety  appliances  of  railroads  resolve 
themselves,  like  everything  else,  into  a  purely 
practical  question,  a  question  of  ways  and  means. 
Governments  will  not,  however,  view  the  subject 
in  this  way.  To  them  a  thousand  people  starv- 
ing in  silence  is  not  so  distressing  as  the 
dramatic  death  of  a  single  man  at  some  rail- 
way crossing.  The  subject  should  be  stripped  of 
sentiment. 

The  limit  of  expenditure  for  safety  appliances 
cannot  be  fixed,  but  must  be  determined  for  each 
property  apart.  It  should  go  as  far  as  circum- 
stances warrant  and  no  further.  In  making  such 
expenditures  it  should  be  remembered  that  every 
dollar  saved  to  the  owners  of  railroads  in  this 
direction  is  a  dollar  laid  away  to  be  used  to  build 
and  operate  railroads  and  factories,  and  to  the 
extent  this  is  so  employment  is  given  those  who 


BASIS  AXD  METHOD  OF  CAPITALIZING.  39 

must  work;  those  who  must  provide  bread  and 
clothing  for  dependent  wives  and  children. 

Many  countries  have  sought  systematically  to 
direct  and  control  capitalization.  Thus,  England 
sought  through  the  law  to  compel  two-thirds  of 
the  money  to  be  raised  by  the  sale  of  stock. 
Only  one -third  could  be  raised  by  bonds  or 
debentures.  In  the  United  States,  on  the  other 
hand,  greater  discretion  has  been  permitted  the 
projectors  of  railroads.  Differences  in  practice 
do  not  imply  wrong  or  improper  methods.  It 
has  been  necessitated  in  this  case  by  different 
conditions.  In  one  case  the  investment  has  been 
practically  secure;  in  the  other  speculative;  in 
one  country  money  has  been  plentiful,  in  the 
other  scarce. 

Differences  in  method  of  capitalization  in  Eng- 
land and  America  are  accentuated  by  differences 
in  cost.  The  greater  cost  in  the  former  country 
is  occasioned  largely  by  the  high  price  paid  for 
right  of  way  and  the  ideal  thoroughness  with 
which  work  is  done  before  roads  are  thrown  open 
for  business. 

Government  aid  has  been  a  factor  in  railway 
construction  on  the  continent.  In  Great  Britain, 
however,  the  government  has  never  in  a  single 
instance  guaranteed  the  debt  of  a  railroad.  The 
wealth,  courage  and  commercial  enterprise  of  the 
people  have  rendered  such  a  course  unnecessary. 
Guarantees  have,  however,  been  freely  made  in 
the  British  colonies.  In  new  countries  the  aid 
extended  to  railroad  companies  commonly  takes 


40       FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  form  of  concessions  of  land  and  local  assist- 
ance. This  is  the  form  it  has  taken  in  the  United 
States,  except  in  the  case  of  the  Pacific  roads, 
which  the  government,  for  political  reasons,  aided 
by  guaranties. 


CHAPTER  III. 

CAPITALIZATION   AND    MANAGEMENT;     METHODS    PUR- 
SUED   BY    DIFFERENT    GOVERNMENTS. 

Wide  fluctuations  in  the  dividends  of  railroads 
suggest  widely  different  causes  to  investors  and 
others.  In  the  case  of  corporations  paying  small 
dividends,  or  paying  no  dividends  at  all,  the 
inquiry  suggests  itself:  Were  the  roads  needed; 
will  they  ultimately  be  productive;  were  they 
wisely  located;  were  they  properly  constructed; 
are  they  efficiently  managed;  are  they  permitted 
to  base  their  rates  on  economic  laws  (on  what 
traffic  will  bear),  or  are  they  oppressed  in  this 
respect  by  the  government? 

The  productiveness  (net  revenue)  of  railway 
property  varies  greatly  in  different  sections  of 
the  same  country.  Thus  the  average  for  the 
northwestern  portion  of  the  United  States  was 
for  a  long  time  scarcely  one-third  what  it  was  in 
the  Eastern  states,  and  the  agrarian  spirit  that 
characterized  the  section  in  question  seemed 
likely  to  still  further  increase  the  disparity. 
Happily,  conditions  have  changed  until  the  capital 
stock  of  the  roads  located  in  the  section  referred 
to  stands  as  high  as  any  in  the  world. 

Under  normal  conditions  railway  returns  should 
grow  steadily  better,  because  the  property  should 


42       FINANCING,  CONSTRUCTING,  MAINTAINING. 

grow  stronger  with  the  development  of  the 
country  it  does  so  much  to  build  up.  Wherever 
this  improvement  is  lacking,  it  indicates  want  of 
commercial  enterprise,  or  thrift. 

The  English  companies  very  generally  paid 
dividends  from  the  start.  No  American  com- 
pany did  this,  and  only  the  higher  classes  made 
adequate  return  on  a  part  of  their  cost.  The 
wide  fluctuations  in  the  securities  of  the  railroads 
of  the  United  States  caused  them  at  one  period 
to  be  generally  distrusted.  Their  shares  were 
little  esteemed  by  investors.  Mortgage  bonds 
were  the  favorite  form  of  investment.  In  Eng- 
land, on  the  other  hand,  capital  shares  were 
always  from  the  first  the  popular  form  of  invest- 
ment. However,  with  the  growing  cost  of  their 
railroads  and  increased  capitalization,  debenture 
stock  (which  partakes  of  the  nature  of  a  mort- 
gage) is  becoming  a  favorite  form  of  investment. 

The  growth  of  railway  mileage  and  productive- 
ness has  been  greater  in  the  United  States  than 
in  any  other  country.  This  result  has  been 
achieved  without  injury  to  anyone.  Improved 
methods  of  business  have  kept  pace  with  in- 
creased needs,  while  decrease  in  rates  has  been 
steady  and  marked.  This  decrease  is  fully  eighty 
per  cent,  of  the  original  charge.  Reductions 
have  been  made  in  other  countries,  but  only  to  a 
very  limited  extent  compared  with  those  of 
America.  How  much  further  it  will  be  possible 
to  reduce  rates  in  America,  it  is  impossible  to 
tell.  Much  will  depend  upon  the  law-making 


CAPITALIZATION  AND  MANAGEMENT.  43 

power  and  the  spirit  in  which  the  laws  are  en- 
forced. Both  must  conform  to  the  laws  of  trade 
and  commercial  needs. 

The  ability  of  a  railroad  company  to  capitalize 
its  property  on  favorable  terms  depends,  as  I 
have  intimated  elsewhere,  upon  the  plentifumess 
of  money  and  confidence  in  the  ability  of  the 
property  to  earn  a  return  on  the  investment. 
The  last,  it  is  manifest,  depends  upon  the  produc- 
tiveness of  the  country,  its  friendliness,  the 
economy  and  skill  used  in  construction  and, 
finally,  the  experience  and  fidelity  of  managers. 
This  last  may  be  said  to  be  assured. 

There  is  no  difference,  so  far  as  the  injury  the 
public  sustains,  between  improvident  manage- 
ment of  private  owners  and  that  of  the  govern- 
ment. Railroads  that  cannot  pay  a  return  on 
the  capital  invested  should  not  be  built.  The 
in j  ury  that  a  community  suffers  from  the  construc- 
tion of  unproductive  roads,  or  those  improperly 
managed,  cannot  be  measured  in  dollars  and 
cents. 

Every  dollar  lost  or  wasted  in  railway  con- 
struction or  administration  impoverishes  the  com- 
munity to  that  extent.  If  roads  do  not  earn  what 
they  might  be  made  to  earn,  the  loss  falls  on  the 
owners  and  thus  on  the  community.  Railways 
that  cannot  earn  a  return  on  their  capital  are  like 
unprofitable  manufactories,  a  curse  to  a  country. 

In  the  United  States  and  England,  where  com- 
mercial needs  have  been  left  free  to  govern  the 
construction  of  railroads,  only  such  properties 


44       FINANCING,  CONSTRUCTING,  MAINTAINING. 

as  are  needed  should  have  been  built  and,  conse- 
quently, only  productive  properties  (present  or 
prospective)  should  exist.  That  the  contrary  is 
true  is  due  to  excessive  enterprise  and  speculation. 

Wherever  a  line  is  located  on  other  than  busi- 
ness grounds,  whether  to  conserve  military  or 
other  ends,  its  maintenance  becomes  a  perpetual 
tax  on  the  community,  just  as  much  as  the  army 
or  navy  of  a  country  is  a  tax. 

Nowhere  do  railroads  cost  so  much  per  mile 
as  in  England.  Correspondingly,  however,  their 
traffic  is  larger.  The  English  roads  are  effectively 
and  honestly  constructed  and  ably  and  efficiently 
managed.  The  return  on  the  capital  invested  is 
generally  satisfactory.  The  expense  of  operating 
English  roads  is  more  per  train  mile  than  on  the 
continent,  and  less  than  in  the  United  States. 
The  average  load  is,  however,  much  less  than  in 
the  United  States.  On  the  basis  of  cost  per  ton 
or  per  passenger  per  mile — the  only  true  basis — 
the  expense  of  maintenance  and  working  is  much 
greater  in  Great  Britain  than  in  America.  The 
relative  cost,  progressively,  per  unit  of  increase 
of  net  revenue  is  also  much  greater  in  England 
than  in  the  United  States.  In  the  United  States 
four  millions  were  found  sufficient  to  increase 
net  earnings  seventy-two  millions ;  in  England 
ten  millions  were  needed  to  increase  net  earnings 
six  millions.* 


*For  particulars  in  regard  to  details  of  capitalization  of 
English  railroads  and  other  matters  incident  thereto,  see  Ap- 
pendix A. 


CAPITALIZATION  AND  MANAGEMENT.  45 

The  difference  in  cost  of  railways  per  mile 
in  the  United  States  as  compared  with  those  of 
Europe,  although  very  large,  is  not  so  great  as 
appears  from  the  accounts.  The  disparity  is  due 
in  part,  as  I  have  noticed  elsewhere,  to  the  fact 
that  a  great  deal  of  construction  work  in  the 
United  States  has  been  paid  for  out  of  net  earn- 
ings. But  after  allowing  for  this,  the  cost  of 
right  of  Avay  and  station  and  yard  facilities  in 
the  United  States  has  been  very  much  less  per 
mile  of  road  or  unit  of  service  than  in  any  other 
country  with  which  its  railway  system  may  prop- 
erly be  compared.  The  lo\v  cost  of  American 
roads  is,  however,  in  the  main  due  to  the  fact 
that  the  owners  of  railroads  were  not  held  to  any 
hard  and  fast  rule  by  government  officials,  but 
were  left  free  to  build  according  to  their  judg- 
ment of  what  was  best.  The  country  thus  got  the 
benefit  of  their  prudent  and  economical  methods. 
Government  interference  in  the  United  States 
has  come  too  late  to  make  her  railroads  costly, 
but  not  too  late,  if  ill  advised,  to  make  their  oper- 
ations wasteful  and  injurious  to  the  country. 

The  policy  that  different  governments  first 
adopted  in  regard  to  railways,  they  have  gener- 
ally followed.  In  some  countries  ownership  by 
the  government  was  contemplated  at  the  start 
and  the  anticipation  has  borne  fruit.  Authoriza- 
tions of  railroads  have  not  been  the  same  from 
year  to  year,  but  have  been  modified  as  experi- 
ence or  interest  suggested.  Thus,  rights  freely 
accorded  early  railroads  have  been  grudgingly 


4G       FINANCING,  CONSTRUCTING,  MAINTAINING. 

granted  or  wholly  denied  later  applicants.  But 
no  great  hardship  has  followed. 

In  the  United  States,  railroads  are  chartered  by 
the  various  states,  sometimes  under  general  laws, 
sometimes  under  special  acts.  The  railroads, 
while  amenable  to  the  police  regulations  of  every 
township  through  which  they  pass,  are  governed 
by  the  regulations  of  the  state.  Each  state  has 
the  right  to  determine  the  method  of  capitaliza- 
tion within  its  boundaries  and  fix  the  amount  of 
taxes.  The  general  government  has  jurisdiction 
only  over  interstate  traffic.  Both  the  general 
government  and  the  various  state  governments 
have  commissioners  to  look  after  their  interests, 
respectively.  Their  action,  however,  is  subject 
to  revision  by  the  courts. 

In  France  the  railway  system  is  owned  partly 
by  the  state  and  partly  by  private  companies. 
Government  interference,  however,  is  active.  It 
was  the  original  intention  that  all  railways  ac- 
corded guaranties  and  immunities  by  the  govern- 
ment should  become  the  property  of  the  state  at 
the  expiration  of  a  certain  period.  In  1883,  how- 
ever, because  of  the  financial  troubles  of  the  gov- 
ernment, and  the  strong  competition  of  private 
companies,  the  government  found  it  necessary  to 
relinquish  its  right  to  purchase.  In  regard  to  aux- 
iliary railroads  constructed  after  that  date,  it  has 
been  provided  that  the  constructing  company  shall 
bear  a  part  of  the  burden  and  the  government  a 
part.  The  builder  shall,  however,  provide  all  the 
money  in  the  first  instance,  the  state  agreeing  to 


CAPITALIZATION  AND  MANAGEMENT.  47 

make  annual  payments  to  it  on  account  of  inter- 
est thereon,  and  for  the  further  purpose  of  creat- 
ing a  sinking  fund  to  extinguish  the  principal  by 
the  time  the  concessions  terminate,  at  which 
period  the  road  will  become  the  property  of  the 
state.  The  French  government  designates  the 
territory  each  railroad  shall  occupy,  and  protects 
it  therein.  The  lines  thus  have  a  local  monopoly. 
The  bulk  of  the  French  lines  is  owned  and  oper- 
ated by  private  companies,  occupying  distinct 
territories.  The  price  paid  for  the  intervention 
of  the  French  government  is  greater,  in  many 
instances,  than  would  be  allowed  if  the  value  of 
independent  management  of  railways  was  better 
understood  or  more  fully  permitted.  Thus,  the 
government  requires  the  free  transportation  of 
its  mails  and  a  very  low  rate  for  its  military  and 
civil  servants,  and,  in  addition  to  other  enact- 
ments, levies  a  duty  or  income  tax  amounting  to 
ten  per  cent,  on  certain  classes  of  earnings. 

Governmental  interference  in  France  is  not 
such  as  to  suggest  imitation  elsewhere.  It  has 
greatly  lessened  individual  interest,  and,  through 
its  cumbersome  exactions,  has  materially  modi- 
fied railway  enterprise.  The  French  system  is 
said  to  be  extravagant  and  top-heavy.  The  gov- 
ernment, in  its  zeal  to  protect  everybody,  has 
carried  its  interference  beyond  the  bounds  of 
conservative  action.  The  supervisory  power  of 
the  French  government  is  both  costly  and  annoy- 
ing. Intended  originally  to  protect  the  people, 
it  has  ended  by  becoming  a  burden.  But  this  is 


48       FINANCING,  CONSTRUCTING, 

(up  to  this  time)  the  effect  of  government  man- 
agement everywhere  and  under  all  circumstances. 
It  is  not  confined  to  France.  Government  inter- 
ference in  the  case  of  railroads  is  more  injurious 
than  in  other  cases,  because  of  the  complex  char- 
acter of  these  properties  and  their  intimate  in- 
fluence on  all  the  affairs  of  life.  No  matter  how 
admirable  government  management  may  be,  it 
cannot  be  so  wise,  so  attentive,  so  alert  to  the 
needs  of  trade  as  the  situation  requires.  It  is 
not  adaptive,  and  is,  moreover,  expensive,  slow 
and  cumbersome.* 

The  debenture  or  bond  system  of  capitalization 
is  more  favorably  viewed  by  the  French  people 
than  any  other.  Stocks,  unless  guaranteed,  are 
too  uncertain  for  these  thrifty  and  cautious 
people.  They  require  definite  guaranties;  a  spe- 
cific agreement  as  to  the  extent  of  the  return  and 
date  of  payment.  The  French  are  greatly  to  be 
admired.  No  people  are  so  apprehensive  of  com- 
mercial results  as  they,  so  quick  to  take  advan- 
tage of  them,  or  so  careful  in  preserving  the  fruits 
of  their  industry,  frugality  and  foresight. 

Germany  exercises  a  supervision  over  its  rail- 
roads such  as  we  might  expect  from  a  military 
government.  It  requires  to  be  consulted  in 
advance  in  regard  to  the  route  roads  propose  to 
traverse,  the  nature  of  their  construction  and 
equipment,  capitalization,  sinking  funds  and 

*I  refer  here  only  incidentally  to  government  control  of 
railroads.  The  subject  is  discussed  more  fully  in  another 
book,  "Economic  Theory  of  Rates." 


CAPITALIZATION  AND  MANAGEMENT.  49 

working  arrangements.  The  state  has  from  the 
start  extended  more  or  less  aid  to  railroads, 
reserving  the  right  to  purchase  at  pleasure,  sub- 
ject to  certain  conditions  as  regards  time  and 
price.  The  German  government  enters  with 
military  precision  and  autocratic  power  into 
every  detail  of  railway  operation.  It  scrutinizes 
with  particularity  all  construction  work;  fitness, 
adequacy  and  handling  of  equipment;  administra- 
tion of  property;  expense  of  operating;  details  of 
receipts,  and  finally,  the  inspection  of  trains,  sta- 
tions and  other  property.  Its  admirable  bureau- 
cratic system,  the  result  of  many  years  of  patient 
and  systematic  work  under  a  stable  government, 
in  a  measure  redeems  its  operations  from  the 
cruel  hardships  that  generally  characterize  gov- 
ernment management.  But  notwithstanding  this 
its  railroads  would  be  operated  with  much  greater 
efficiency  if  they  were  in  the  hands  of  private 
'citizens. 

In  Austria  the  bulk  of  the  railway  securities 
are  guaranteed  by  the  government,  and  the  prop- 
erties, save  their  equipment,  revert  to  it  at  the 
expiration  of  ninety  years.  The  Austria-Hun- 
garian government,  like  that  of  Germany,  has  a 
highly  creditable  civil  service,  and  performs  what 
it  undertakes  with  more  than  average  efficiency. 
It  is  not  able,  however,  to  supply  the  place  of 
private  talent,  experience  and  interest.  It  strives 
to  throw  around  railway  construction  and  man- 
agement every  needed  safeguard.  But  like  the 
emanations  of  other  governments  under  similar 

4-    Vol.  3 


50       FINANCING   CONSTRUCTING,  MAINTAINING'. 

circumstances,  its  regulations  are  more  specious 
than  real.  Thus,  one  of  them  provides  that  in 
the  event  the  profits  of  a  railroad  exceed  fifteen 
per  cent.,  the  government  shall  have  the  right  to 
reduce  them  to  that  figure!* 

In  Belgium  the  government  nas  interested  itself 
directly  and  actively  in  the  operation  of  railroads 
from  the  start.  It  first  took  upon  itself  to  pro- 
vide the  land  they  needed.  Afterward,  its  inter- 
vention extended  to  the  work  of  construction 
and  management.  It  practically  owns  all  the 
railroads  in  the  kingdom.  In  some  cases  they  are 
leased  to  private  parties;  in  others  they  are  man- 
aged directly  by  the  state. 

.  The  Italian  railroads  were  ouiit  partly  by  the 
government  and  partly  by  private  parties.  State 
guaranties  were,  however,  important.  The  gov- 
ernment exercises  a  strict  supervision  over  affairs. 
The  railroad  system  is  vested  in  two  great  com- 
panies having  leases  for  sixty  years,  with  the 
right  to  relinquish  to  the  government  at  the  end 
of  twenty  or  forty  years.  Rental  to  be  paid  the 
government  is  based  on  a  reciprocal  division  of 
receipts. 

In  Holland  the  railways  were  constructed  by 
the  government  with  public  moneys.  The  work- 
ing of  the  roads  is,  however,  intrusted  to  private 
parties,  the  state  participating  in  the  revenues  on 
an  agreed  scale. 

*  This  is  one  of  the  reservations  governments  make  that 
seem  so  sagacious,  but  that  are  really  unnecessary,  unbusiness- 
like and  absurd. 


CAPITA  LIZA  TION  AND  MAN  A  GEMENT.  5 1 

The  number  of  railways  built  and  managed  by 
private  corporations  in  Russia  is  greater,  rela- 
tively, it  is  said,  than  in  any  other  country  on  the 
continent  of  Europe;  but  private  management,  it 
is  thought,  will  not  continue  permanently,  the 
nature  of  the  country  and  the  miltary  exigencies 
of  the  government  rendering  final  possession  of 
the  railroads  by  the  government  almost  a  cer- 
tainty. However,  the  power  of  the  Czar  is  such 
as  to  give  him  control  tantamount  to  that  of  indi- 
vidual ownership.  The  bulk  of  the  railroads  in 
Russia  have  been  fostered  by  governmental  aid, 
conditioned  upon  the  lines  reverting  to  the  state 
under  certain  conditions. 

Such  is,  briefly,  a  history  of  the  development 
and  capitalization  of  the  railroads  of  some  of  the 
great  countries  of  the  world.  In  comparing  the 
methods  that  have  attended  the  inception,  growth 
and  administration  of  railroads,  the  superior  wis- 
dom and  sagacity  of  the  government  of  Great 
Britain  is  apparent.  It  has  believed  from  the 
start  that  the  greatest  good  was  to  be  attained 
by  encouraging  individuals  to  take  the  initiative, 
and  by  granting  them  sole  power  and  responsi- 
bility of  management.  It  has  not  reserved  to 
itself  powers  that  could  by  any  possibility  em- 
barrass owners  or  cripple  the  capacity  of  proper- 
ties. Its  intervention  has  never  extended  further 
than  to  prevent  two  roads  being  built  where  one 
only  was  needed.  Wisdom  such  as  it  has  dis- 
played is  rare  in  the  history  of  mankind,  but  such 
as  we  might  expect  from  a  nation  of  business 


52       FINANCING,  CONSTRUCTING,  MAINTAINING. 

men  who,  by  conservatism,  energy  and  wise 
administration  of  affairs,  have  made  that  coun- 
try the  greatest  the  world  has  ever  known.  The 
business  men  of  America  are  not  less  wise,  not 
less  conservative,  not  less  energetic  than  their 
English  cousins.  The  action  of  the  two  govern- 
ments has  from  the  start  been  based  on  purely 
commercial  grounds.  It  has  been  such  as  the 
greatness  of  the  occasion  and  the  exigencies  of 
railway  property  required.  It  may  well  find 
favor  and  imitation  in  other  less  worldly  wise 
countries. 


CHAPTER  IV. 

INFLUENCES     FAVORABLE     AND     OTHERWISE     ON     THE 
CAPITALIZATION    OF    RAILROADS. 

Iii  capitalizing  railways,  care  ought  always  to 
be  exercised,  so  far  as  it  is  practicable,  not  to 
issue  a  form  of  security  which  may  at  some 
future  time  make  those  holding  it  antagonistic 
to  the  permanent  interests  of  the  property.  That 
will  prevent  a  conservative  course  being  followed. 
That  may  have  the  effect  to  trench  on  necessary 
reserves,  or  suggest  reckless  financiering  in  other 
directions.  Circumstances,  however,  sometimes 
compel  such  a  course;  the  financial  situation  of 
a  property  may  be  such  as  to  prevent  consider- 
ation of  future  contingencies.  The  vicissitudes 
of  business  afford  many  illustrations  of  this  kind, 
in  private  life  as  well  as  in  corporate  experience. 
While  they  are  to  be  deplored,  they  cannot  be 
remedied  nor  their  consequences  avoided.  Busi- 
ness men  live  in  a  practical  world,  and  provide 
as  best  they  may  for  its  wants  as  they  occur, 
leaving  it  to  their  successors  to  do  the  same. 
However,  an  emergency  that  compels  a  disregard 
of  the  future  in  corporate  existence  must  be  real 
and  pressing;  nothing  else  can  excuse  it.  Such 
an  occasion  may  justify  the  issue  of  an  income 

(53) 


54        FINANCING,  CONSTRUCTING,  MAINTAINING. 

bond  or  a  stock  upon  which  no  dividend  can  be 
paid  until  a  certain  return  has  been  made  on  a 
prior  security.  But  such  a  thing  is  sure,  sooner 
or  later,  to  create  antagonisms  between  holders. 
When  this  occurs,  the  scales  of  j  ustice  cannot  be 
evenly  balanced  nor  properties  impartially  ad- 
ministered. Whenever  it  is  in  the  power  of  a 
particular  class  of  holders  to  take  advantage  of 
another  class  of  holders,  we  may  be  certain 
that  they  will  do  so.  Such  struggles,  however, 
teach  men  wisdom,  self-reliance,  foresight  and 
prudence,  and  are  not,  therefore,  unmixed 
evils. 

The  holders  of  different  kinds  of  railway  secu- 
rities largely  represent  different  classes  of  people. 
Those  whose  fortunes  require  a  definite  and  sure 
income  are  conservative  and  invest  only  in  secu- 
rities of  a  high  class.  Many  business  men  and 
capitalists  are  attracted  only  by  securities  of  this 
kind.  Those  not  so  conservative,  or  to  whom 
present  income  is  not  a  matter  of  especial  con- 
cern, take  into  account'the  future  possibilities  of 
a  property.  The  speculative  classes  invest  in  any- 
thing they  think  they  may  make  money  out  of. 
They  are  like  the  fireflies  that  glimmer  in  the 
dusk  of  a  summer's  evening,  now  here,  now  there, 
but  affording  neither  light  to  guide  nor  fire  to 
warm. 

Under  normal  conditions  the  price  of  railway 
securities  is  based  on  present  returns,  conditioned 
on  future  probabilities.  Capital  is  extremely  sen- 
sitive to  extraneous  influences,  such  as  unfriendly 


INFLUENCES' ON  CAPITALIZATION.  55 

legislation,  or  possible  reverses  of  business.  Every 
influence  of  this  kind  is  carefully  weighed  by  pru- 
dent investors  and  fully  discounted  in  advance. 
Many  securities  do  not,  unfortunately,  command 
a  price  proportionate  to  their  value,  because  of 
not  being  fully  known  to  those  who  have  money 
to  invest  in  enterprises  of  this  character.  On  the 
other  hand,  many  securities  command  a  much 
greater  price  than  their  relative  worth  justifies, 
because  of  being  well  known  and  generally 
traded  in. 

The  holders  of  railway  securities  are  highly 
apprehensive.  In  nothing  is  their  business-like 
character  so  quickly  and  unmistakably  evinced 
as  in  its  condemnation  of  attempts  to  bolster  up 
the  price  of  securities  by  such  fictitious  aids  as 
the  payment  of  unearned  dividends  or  a  division 
of  profits  required  to  be  reinvested  in  the  prop- 
erty. Such  action  always  results  eventually  in 
weakening  securities.  Thus  it  frequently  hap- 
pens that  a  dividend  will  depreciate  a  stock  to  a 
much  greater  extent  than  the  amount  divided. 
So  well  is  this  understood  in  the  United  States 
that  conservative  men  who  manage  railways  will 
not  declare  a  dividend  for  a  sum  greater  than  the 
actual  financial  affairs  of  the  company  warrant, 
erring,  if  they  err  at  all,  on  the  safe  side. 

In  the  inception  of  railways  in  America  it  was 
designed  that  they  should  be  constructed  wholly 
with  the  proceeds  of  capital  stock.  But  the  discre- 
tion such  form  of  security  afforded  those  charged 
with  management  (as  to  time  and  amount  of 


56       FINANCING,  CONSTRUCTING,  MAINTAINING. 

return  to  be  rendered  holders)  did  not  satisfy 
investors.  Not  that  managers  were  generally  un- 
faithful, but  that  results  did  not  realize  the  ex- 
pectations of  owners,  and  they  did  not  have  the 
control  over  their  property  they  desired.  Hence, 
while  capital  stock  was  not  wholly  abandoned, 
mortgage  bonds  and  other  forms  of  security,  defi- 
nite as  regards  returns,  took  its  place.  The  wis- 
dom of  this  course  cannot  be  doubted. 

The  construction  of  a  railway  is  attended  by 
an  almost  infinite  variety  of  influences,  as  regards 
available  means  and  probable  productiveness  of 
the  property.  Upon  these  the  amount  and  nature 
of  its  capitalization  directly  depend.  The  securi- 
ties issued,  whatever  their  amount  or  form,  repre- 
sent the  property.  They  are  the  axis  about  which 
everything  revolves;  the  center  of  expectation 
and  desire;  the  tangible  evidence  of  ownership, 
of  accumulated  wealth,  of  hope  of  income  or  gain. 
Their  fluctuations  in  the  market  are  consequently 
marked  by  gladness  or  sorrow,  comfort  or  depri- 
vation, abundance  or  want  of  holders. 

The  uniformity  of  relation  that  net  income 
bears  to  capital  over  the  world  is  an  evidence  of 
the  ^wisdom  of  the  capitalistic  class.  It  proves 
that,  notwithstanding  the  vagaries  of  govern- 
ments and  peoples,  the  expectations  of  capital  in 
all  stable  countries  have  been  fulfilled. 

Because  of  unavoidable  limitations,  invest- 
ments in  railways  cannot  exceed,  if  they  equal, 
rates  of  interest  in  other  directions.  But  they 
should  not  fall  far  below,  and  when  they  do,  it 


INFLUENCES  ON  CAPITALIZATION.  57 

indicates  abnormal  conditions  which  should  be 
remedied. 

The  greatest  possible  differences  exist  as  to  the 
relation  earnings  and  expenses  of  railroads  bear 
to  each  other.  The  relation,  whatever  it  may  be, 
is  generally  construed  as  indicating  the  relative 
value  of  properties,  or  the  wisdom  and  economy 
exercised  in  working  them.  It  varies,  however, 
very  much  from  year  to  year. 

Railways  generally  may  be  depended  upon  to 
show  the  best  results  whose  organization  is  the 
best.  Wisdom  in  organizing  precedes  skill  and 
fidelity  in  managing.  Only  the  securities  of  such 
companies  afford  safe  investments;  only  such 
should  be  traded  in.  Others  may  be  stable  for  a 
time,  but  are  unsafe. 

Men  differ  greatly  in  opinion  in  regard  to 
methods  of  management.  From  the  results 
achieved,  many  believe  the  administration  of 
railroads  in  the  United  States  to  be  the  best  in 
the  world;  that  no  others  equal  it  in  ability  to 
achieve  great  ends  with  so  little  friction  or  at  so 
small  a  cost.  Moreover,  it  grows  each  day  more 
effective,  each  day  better,  each  day  more  ac- 
countable. 

Corporations  managed  by  private  owners  are 
the  most  effective,  and  the  most  useful  to  the 
community.  The  percentage  of  expenses  to  earn- 
ings in  thecaseof  private  ownership  is  considerably 
less  under  like  conditions  than  state  management. 
It  has  been  demonstrated,  over  and  over  again, 
that  government  control  is  more  expensive  than 


58       FINANCING,  CONSTRUCTING,  MAINTAINING. 

that  of  private  management,  but  in  considering 
the  difference  in  cost  it  should  be  remembered 
that  the  loss  to  the  community  is  only  repre- 
sented, in  part,  by  the  difference  in  expense  of 
working  under  government  management  as  com- 
pared with  private  ownership.  Waste  in  expenses 
represents  high  rates.  Economical  management, 
low  rates.  Under  one  many  industries  are  impos- 
sible that  may  be  carried  on  profitably  under  the 
other.  Extravagance  in  the  management  of  rail- 
ways ever  means  more  to  the  public  than  the 
difference  in  the  amount  of  the  expense  account. 
Of  the  factors  that  affect  the  productiveness  of 
capital  invested  in  railways,  cost  of  maintain- 
ing and  operating  are  ever  quite  as  important  as 
gross  revenue.  The  cost  of  operating  is  being 
decreased  year  by  year,  as  we  become  more  expe- 
rienced and  possess  better  appliances,  but  the 
cost  of  maintenance  is  not  so  sensibly  affected 
by  these  influences. 


CHAPTER  V. 

SOMETHING    ABOUT    THE     CHARACTER    OP    DIFFERENT 
KINDS   OF    SECURITIES. 

The  capitalization  of  railways  takes  on  that 
form  which  best  conserves  the  interests  of  the 
property.  Instances  where  this  is  not  so  are  ex- 
ceptions, exceptions  to  be  guarded  against,  no 
doubt,  but  not  to  be  made  the  occasion  of  em- 
barrassing railroads  generally. 

Methods  of  capitalizing  railways  are  few  and 
simple,  and  such  as  investors  understand.  Men 
will  not  place  funds  in  ventures  difficult  to  com- 
prehend or  that  they  are  unused  to. 

If  the  law  takes  cognizance  at  all  of  methods 
of  capitalizing  railways,  it  should  prevent  stocks 
or  bonds  being  issued  except  for  bona  fide  consid- 
eration, for  new  property  or  improvements. 
However,  as  a  matter  of  fact,  the  intervention  of 
the  law-making  power  is  not  necessary,  except  to 
legalize  what  is  done.  Buyer  and  seller  may  be 
safely  left  to  adjust  details  and  arrange  prices. 
Private  citizens  are  able  here,  as  elsewhere,  to 
guard  their  own  interests.  Methods  and  forms 
arranged  by  individuals  familiar  with  such  mat- 
ters, and  personally  concerned,  will  always  be 
better  than  those  of  a  perfunctory  nature  ar- 
ranged by  public  officials  to  fit  every  occasion. 

(59) 


60       FINANCING,  CONSTRUCTING,  MAINTAINING. 

It  is  a  purely  practical  question,  to  be  settled 
between  practical  and  self-adaptive  people. 

While  wrongs  have,  no  doubt  attended  the 
capitalization  of  particular  railroads,  personal 
surveillance  and  self-interest  are  more  powerful 
to  control  and  keep  such  matters  in  check  than 
any  other  influences.  The  state  has  not  suffered 
because  of  laxity  in  this  respect.  On  the  con- 
trary, enormous  advantages  have  accrued  to  it 
from  the  successful  launching  of  railways,  through 
individual  enterprise,  impossible  under  more  com- 
plex forms. 

Men  who  invest  money  look  carefully  to  the 
security  they  get,  and  may  be  depended  upon  to 
hold  in  restraint  those  with  whom  they  deal.  If 
they  fail  to  do  so,  the  experience  they  gain 
through  their  losses  is  money  well  invested. 
Men  are  thus  taught.  On  the  other  hand,  gov- 
ernmental interference  fosters  ignorance  and. 
builds  up  a  dependent  instead  of  a  self-reliant 
people. 

In  all  matters  of  a  commercial  nature  man's 
covetousness  will  crop  out — will  lead  him  to  do 
things  he  ought  not  to  do  and  omit  to  do  things 
he  ought  to  do.  It  has  been  so. from  the  begin- 
ning and  will  be  to  the  end.  Acquisitiveness  is 
the  instinct  of  trade,  and  we  make  a  mistake  in 
attaching  importance  to  many  of  the  practices  it 
gives  rise  to.  Railway  owners  have  been  singled 
out  for  especial  animadversion  in  this  respect, 
while  kindred  practices  on  the  part  of  merchants, 
manufacturers,  bankers  and  others  have  passed 


THE  CHARACTER  OF  SECURITIES.  61 

unnoticed.  Those  who  own  and  operate  railroads 
compare  favorably  with  men  engaged  in  other 
commercial  pursuits.  Their  weaknesses  are  not 
on  the  whole  prejudicial  to  public  good;  their 
lapses  from  virtue  not  more  frequent  than  those 
of  editors  and  farmers.  When  these  lapses  occur, 
it  is  wrong  to  attribute  to  them  the  importance 
of  conditions.  They  should  be  treated,  if  crim- 
inal, as  we  treat  criminal  acts  in  other  walks  of 
life.  But  the  whole  railroad  community  should 
not  be  bound  over  to  keep  the  peace  because  of 
them. 

An  extreme  instance  of  deliberate  wrong-doing 
is  the  case  of  those  who  build  railroads  without 
reference  to  their  need  or  earnings  power,  with  a 
view  to  making  money  out  of  their  construction, 
capitalization  or  sale.  Such  transactions  may 
properly  be  prevented  by  law,  if  it  can  be  done 
without  creating  in  the  minds  of  the  people  a 
further  desire  to  interfere  through  the  legislature.1 
A  law  requiring  the  projectors  of  railroads  to 
'secure  the  approval  in  advance  of  an  impartial 
governmental  board  of  experts  would  be  a  good 
thing,  if  we  could  be  sure  it  would  be  honestly 
and  wisely  administered. 

Concentrating  the  savings  of  many  in  the 
ownership  of  railways  has  been  followed  by  simi-1 
lar  concentration  elsewhere.  The  tendency  of 
the  times  is  steadily  in  the  direction  of  the  con- 
solidation of  analogous  interests,  either  in  corpo- 
rations or  so-called  trusts.  We  may  inveigh 
against  this  tendency,  but  uselessly,  because  it 


62       FINANCING,  CONSTRUCTING,  MAINTAINING. 

is  responsive  to  the  needs  of  mankind;  is  the 
outgrowth  of  competition — of  the  necessity  there 
is  to  reduce  expenses  in  order  to  afford  owners 
of  capital  a  margin  of  profit. 

It  is  said  that  the  capital  invested  in  railroads 
represents  in  the  neighborhood  of  a  tenth  of  the 
wealth  of  the  world  and  a  third  of  its  invested 
capital.  Its  relation  to  other  industries  is  more 
likely  to  increase  in  magnitude  than  diminish 
with  time.  If  wisely  governed,  its  growth  will 
be  rapid;  if  unwisely  governed,  its  growth  will 
be  slow.  Each  day  adds  to  our  experience 
and  fits  us  better  to  cope  with  the  subject.  We 
notice  this  growing  power  in  the  disposition  and 
ability  of  owners  to  manage  great  properties 
where  they  formerly  found  it  difficult  to  manage 
small  ones;  in  the  growing  tendency  to  consoli- 
date scattering  lines  into  great  systems. 

Within  certain  bounds  concentration  is  a  con- 
venience to  the  public  and  a  profit  to  owners. 
But  it  must  be  attended  by  enlarged  and  adapt- 
ive methods  of  administration.  When  a  property 
passes  beyond  the  immediate  eye  of  its  manager, 
when  he  can  no  longer  watch  each  man  and  see 
what  he  is  doing  from  hour  to  hour,  responsible, 
co-operative  governmental  methods  must  be 
instituted.  The  trouble  is  that  those  affected  by 
the  change  frequently  do  not  know  anything 
about  responsible  methods  of  government,  or,  if 
they  do,  will  not  conform  thereto.  Such  cases 
call  for  quick  and  energetic  action  wherever  it  is 
expected  properties  will  prove  productive. 


THE  CHARACTER  OF  SECURITIES.  63 

The  benefits  of  consolidated  properties  have 
been  added  to  by  the  practices  of  railroads  of 
sending  traffic  through  over  connecting  lines 
without  retailing  or  changing  cars.  Such  arrange- 
ments have,  so  far  as  the  public  is  concerned,  the 
advantages  of  a  continuous  line.  They  add  to  the 
convenience,  comfort  and  profit  of  the  people,  and 
stimulate  their  patriotism  and  broaden  their 
understanding  by  leading  them  to  undertake 
distant  ventures  they  would  not  otherwise  at- 
tempt. 

In  the  construction,  capitalization  and  oper- 
ation of  railroads,  it  is  inevitable  that  unfair 
advantage  should  sometimes  be  taken  of  owners 
by  their  representatives.  Such  occurrences  are, 
however,  a  mere  incident  of  the  situation,  neither 
frequent  nor  important.  I  do  not  make  them 
a  feature  of  my  writings,  because  such  evils  are 
unavoidable  and  carry  within  themselves  the 
seeds  of  correction.  The  owners  of  railroads 
may  be  safely  trusted  to  apply  necessary  rem- 
edies. It  is  idle  to  inveigh  against  such  practices 
or  formulate  speculative  remedies.  They  can 
only  be  reached  effectively  by  the  owner.  His 
self-interest  will  prompt  action  and  quicken  his 
intelligence. 

The  securities  of  railroads  may  be  safely  left 
to  the  corporation  that  sells  and  to  those  who 
buy.  Public  solicitude  here,  as  elsewhere,  is  not 
only  injurious,  but  futile.  If  men  are  beguiled 
into  unprofitable  trades  it  teaches  them  wisdom, 
and  wisdom  thus  acquired  is  a  part  of  our 


64       FINANCING,  CONSTRUCTING,  MAINTAINING. 

commercial  greatness.  Experience  cannot  be  ob- 
tained in  any  less  practical  way.  Governments 
cannot  teach  it,  nor  can  laws  render  its  posses- 
sion unnecessary  in  life.  The  struggle  between 
those  who  have  something  to  sell  and  those  who 
wish  to  buy  is  incessant.  Injustice  is  oftentimes 
done,  but  it  cannot  be  prevented  by  statutes  or 
police  regulations,  and  good  eventually  flows 
from  it. 

In  the  purchase  of  railway  securities  investors 
do  not  always  get  the  security  they  think  they 
do.  Thus,  a  mortgage  should  be  for  a  part  only 
of  the  cost.  Those  who  make  loans  on  real 
estate  only  advance  a  portion  of  the  value.  The 
mortgage  bonds  of  railways  should  be  similarly 
supported.  There  would  then  be  fewer  roads  in 
the  hands  of  receivers,  fewer  disappointed  bond- 
holders. The  precaution  is  a  reasonable  one. 

When  properties  are  built  wholly  with  the  pro- 
ceeds of  bonds,  such  securities  are  not  as  good  as 
capital  stock  would  be  under  similar  circum- 
stances. Such  ventures  lack  financial  elasticity. 
They  cannot  adjust  themselves  to  the  vicissitudes 
of  business,  and  because  of  this  are  likely  at  any 
time  to  occasion  a  crisis  highly  detrimental  to 
owners.  Reasonable  safety  requires  that  only  a 
portion  of  the  cost  of  a  property  should  be  cov- 
ered by  bonds,  or  that  such  securities  should  be 
guaranteed  by  more  stable  properties.  When 
thus  supported,  they  offer  greater  attractions 
than  capital  stock,  and  may,  therefore,  as  a  rule, 
be  sold  to  better  advantage  than,  stock 


THE  CHARACTER  OF  SECURITIES.  65 

The  English  generally  divide  their  capital 
account^ as  between  bonds  (debentures)  and  pre- 
ferred and  common  stock.  The  value  of  this 
division,  and  the  relation  each  sustains  to  the 
other  so  as  to  secure  advantageous  results  (espe- 
cially in  the  case  of  established  properties),  is 
thus  portrayed  by  an  English  writer  on  the  sub- 
ject.* "  The  smaller  the  percentage  of  bonds  the 
greater  the  likelihood  of  some  dividend  being 
paid  on  the  shares.  Thus  the  proportion  of  capi- 
tal upon  which  no  dividend  is  paid  is  twice  as 
great  in  the  United  States  as  in  the  United 
Kingdom.  A  large  percentage  of  bonds  has 
another  very  important  consequence,  namely, 
that  it  renders  the  line  more  susceptible  of  becom- 
ing bankrupt  or  falling  into  a  receiver's  hands,  or 
being  wound  up,  as  the  case  may  be.  A  loss  of 
earnings  which  in  the  case  of  a  line  with  twenty- 
five  per  cent,  of  bonds  would  only  involve  a 
diminution  of  the  dividend,  might  in  the  case  of 
a  line  with  fifty  per  cent,  of  bonds  involve  the 
appointment  of  a  receiver.  Now  the  defaults 
which  have  occurred  on  American  lines  have 
been  one  of  the  causes  of  the  prevalent  distrust 
of  American  railway  securities.  Thus  a  practical 
means  of  improving  the  credit  of  American  rail- 
ways would  be  -by  raising  further  capital,  when 
required,  by  the  issue  of  shares  instead  of  bonds. 
The  difference  between  English  and  American 
railways  is  marked.  In  the  United  Kingdom 
Hither  more  than  half  the  share  capital  consists 

*  Charles  Eason,  Jr.,  M.  A. 
5    Vol.  3 


66        FINANCING,  CONSTRUCTING,  MAINTAINING. 

of  guaranteed  and  preference  shares;  while  in  the 
United  States  only  about  thirteen  per  cent,  of 
the  stock  is  preferred.  .  .  The  English  compa- 
nies consider  it  more  beneficial  to  raise  capital 
by  the  creation  of  preferred  stock.  A  too  large 
creation  of  preferential  stock  has  disadvantages. 
It  renders  the  ordinary  stock  more  exposed  to 
variations  of  dividend  and  the  company  more 
liable  to  the  discredit  of  not  paying  full  dividend 
on  preference  shares,  and  also  impairs  the  control 
of  the  line  by  the  ordinary  shareholders,  who  are 
most  interested  in  its  successful  management. 
It  is  not  clear  to  me  why  the  American  lines  have 
created  so  little  preferred  stock;  for  example, 
the  Pennsylvania  railway  company  has  no  pre- 
ferred stock.  Now,  this  company  would  find  the 
same  advantages  from  raising  capital  by  means 
of  preferred  stock  as  are  obtained  by,  say,  the 
London  and  North- Western.  The  advantages 
are  (1)  as  against  the  issue  of  bonds  it  has  the 
advantage  of  giving  additional  security  to  the 
payment  of  interest  upon  existing  mortgages, 
and  (2)  as  against  ordinary  stock,  it  has  the 
advantage  of  not  tending  to  reduce  the  dividend 
upon  the  ordinary  stock,  which  a  creation  of 
ordinary  stock  would  have  unless  the  capital 
expended  yielded  the  full  rate  of  dividend  already 
being  paid  upon  the  ordinary  shares.  Thus,  sup- 
pose five  million  dollars  of  capital  to  be  required, 
the  net  revenue  yielded  will  in  no  way  be  affected 
by  the  mode  in  which  the  money  is  raised,  whether, 
let  us  say,  by  bonds  at  three  and  a  half  per  cent., 


THE  CHARACTER  OF  SECURITIES.  67 

or  preferred  stock  at  four  per  cent.,  or  ordinary 
stock  on  which  a  seven  per  cent,  dividend  is  being 
paid.  Let  us  suppose  that  the  expenditure  yields 
a  net  revenue  of  one  hundred  and  fifty  thousand 
dollars.  In  case  one  the  debenture  interest  is  in- 
creased by  one  hundred  and  seventy-five  thousand 
dollars,  there  is  twenty-five  thousand  dollars  less 
for  division  among  preferred  and  ordinary  share- 
holders, and  the  margin  of  earnings  over  interest 
is  diminished  to  this  extent.  In  case  two,  the 
preferred  stock  requires  an  additional  two  hun- 
dred thousand  dollars  per  annum.  Thus  the 
sum  available  for  ordinary  shareholders  is  di- 
minished by  fifty  thousand  dollars;  but  on  the 
other  hand  the  margin  of  earnings  over  interest 
is  increased'  by  one  hundred  and  fifty  thousand 
dollars.  In  case  three,  the  margin  over  earnings 
is  increased  as  in  case  two,  but  the  net  revenue 
is  deficient  by  two  hundred  thousand  dollars 
of  the  sum  required  to  pay  seven  per  cent, 
dividend  upon  ordinary  stock,  and  the  dividend 
must  therefore  be  diminished.  The  course  to  be 
adopted  in  any  particular  case  must  depend  upon 
the  proportions  of  the  capital  already  existing 
and  the  dividends  that  are  being  paid.  Taking 
the  case  of  the  Pennsylvania  railway,  a  preference 
stock  would  be  the  best,  for  the  proportion  of 
bonds  is  large  enough,  and  as  it  is  not  likely  that 
the  new  capital  will  earn  eight  per  cent,  the  crea- 
tion of  preference  stock  would  tend  to  maintain 
the  dividend.  It  is  an  obvious  objection  that  a 
new  stock  might  be  less  marketable  on  account 


68       FINANCING,  CONSTRUCTING,  MAINTAINING. 

of  its  novelty,  custom  having  a  great  deal  of 
influence  in  such  matters;  but  the  essential 
soundness  of  the  policy  would  soon  be  perceived 
by  investors.  It  is  a  sine  qua  non  of  a  sound  issue 
of  preference  stock  that  a  dividend  should 
have  been,  for  some  time,  steadily  paid  upon 
ordinary  stock,  otherwise  tne  preference  is  one  in 
name  only.  Fluctuations  in  receipts  render  the 
value  of  stocks  uncertain,  and  thus  fit  them  for 
being  the  subjects  of  speculation.  It  is  the  small 
proportion  of  stocks  to  bonds  which  enables  a 
small  combination  of  capitalists,  or  even  a  single 
capitalist,  to  control  entire  railways  and  to 
manipulate  them  at  pleasure.  'The  only  prac- 
tical way  to  mitigate  such  power  is  by  operating 
upon  the  causes  which  form  its  basis.  It  is  im- 
portant to  observe  how  the  various  circumstances 
combine  to  facilitate  the  acquisition  of  properties 
under  the  circumstances  mentioned.  First  the 
earnings  power  of  railways  is  liable  to  great  varia- 
tions; second,  this  renders  manipulation  of  the 
traffic  and  earnings  difficult  to  detect;  third,  the 
small  percentage  of  share  capital  renders  the 
dividends  very  sensitive  to  variations  in  earnings; 
and,  fourth,  this  causes  a  large  proportion  of 
lines  to  pay  no  dividends  or  very  small  dividends; 
fifth,  the  value  of  the  shares  being  depreciated, 
and  standing  very  much  below  par,  only  a  small 
amount  relatively  is  necessary  to  purchase  a 
majority  of  the  stock,  and  thus  obtain  control  of  a 
line;  sixth,  the  non-existence  of  any  large  quan- 
tity of  preference  stock  further  facilitates  such 


THE  CHARACTER  OF  SECURITIES.  69 

operations.  Voting  power  attaches  to  preference 
stock,  but  not  to  bonds.  Hence,  a  large  quantity 
of  preference  stock  would  make  it  more  difficult 
to  get  a  preponderance  of  voting  power." 

The  matter-of-fact  way  in  which  railways  were 
built  and  capitalized  in  the  United  States  is 
characteristic  of  business  men.  The  scant  means 
at  hand  to  build  with,  the  high  rate  of  interest 
that  prevailed,  and  the  risk  that  attended  such 
ventures,  occupied  the  people  much  more  than 
questions  of  future  administration.  Construction 
and  capitalization  were  such  as  the  resources  of  a 
versatile  people,  hardly  pressed,  suggested.  The 
American  method  of  capitalization  was  good  for 
America.  It  resulted  in  the  rapid  development 
of  the  country  and  its  unexampled  growth  in 
wealth.  If  it  had  not  been  generally  fair  and 
equitable,  this  would  not  have  been  the  case. 

The  peculiar  situation  in  the  United  States, 
coupled  with  the  extreme  conservatism  of  those 
who  own  our  railroads,  first  suggested  the  reser- 
vation of  a  part  of  the  net  earnings  for  use  in 
improving  the  property.  Many  institutions  have 
thus  been  saved  from  discredit  that  would  other- 
wise have  met  with  disaster.  It  is  a  simple, 
homely  means,  and  such  as  only  practical  busi- 
ness men  could  be  induced  to  adopt.  Referring 
to  it,  Mr.  Eason  says:  "What  are  the  advantages 
of  carrying  forward  these  balances,  and  how  are 
they  employed?  They  are  required  to  give  ad- 
ditional security  to  the  bondholders,  and  are 
rendered  necessary  by  the  excessive  proportion 


70       FINANCING,  CONSTR  UCTING,  MA  IX 7\  I IXIN( , . 

of  interest  bearing  capital,  and  consequent  in- 
terest charges.  They  are  employed  as  capital, 
but  as  they  do  not  bear  interest,  whatever  they 
yield  goes  to  increase  the  surplus  for  interest 
and  dividend.  The  effect  is  shown  in  the  main- 
tenance of  the  earning  power  of  a  line  and  in  its 
power  to  maintain  it  in  the  face  of  competition 
of  other  companies.  The  value  put  upon  the 
permanent  way  in  the  company's  balance  sheet 
is  merely  nominal.  The  true  measure  of  value 
is  net  revenue  that  a  company  can  earn.  In  de- 
ciding upon  the  appropriation  of  net  revenue  and 
the  method  of  providing  the  capital  for  further 
expenditure,  whether  on  lines  open  for  traffic, 
making  new  lines,  or  investments  in  securities  of 
other  lines,  the  important  point  for  consideration 
is  what  will  be  the  effect  upon  the  net  revenue. 
If  the  additional  expenditure  will  yield  net  reve- 
nue sufficient  to  pay  the  interest  upon  the  sum 
expended,  there  is  no  reason  why  it  should  not 
be  provided  for  by  the  issue  of  an  additional  cap- 
ital. If  it  is  provided  for  out  of  income,  the  ad- 
ditional net  revenue  would  become  available  for 
payment  of  dividend  upon  the  existing  stock,  and 
the  rate  of  dividend  would  increase.  But  it  may 
happen  that  competition  may  so  reduce  rates  that 
the  earning  power  of  the  capital  may  diminish, 
so  that  the  yield  on  total  expenditure  may  not 
be  increased.  In  this  case,  if  the  expenditure 
had  been  provided  for  by  creation  of  fresh  capi- 
tal, the  dividend  must  diminish,  but  if  provided 
for  out  of  income  the  rate  of  dividend  may  be 


THE  CHARACTER  OF  SECURITIES.  71 

maintained.  ...  It  may  be  that  the  capital 
expended  has  added  to  the  earning  power  of  the 
line,  but  the  net  revenue  may  remain  stationary 
in  consequence  of  a  decline  in  rates,  and  it  may 
well  be  that  it  was  recognition  of  the  liability  to 
a  loss  of  profit  from  this  cause  which  leads  a 
company  to  devote  surplus  income  to  permanent 
expenditure.  The  company  adopting  such  a  pol- 
icy has  a  clear  advantage  over  a  rival  company 
which  has  no  surplus  income,  and  has  to  obtain 
the  funds  for  construction  by  the  creation  of  ad- 
ditional capital.  This  latter  company  may  be 
gradually  driven  into  default  by  competition  with 
a  strong  company  adopting  another  policy." 

It  is  to  meet  the  eventualities  of  the  future 
that  provident  owners  of  railroads  are  led  to  in- 
vest a  part  of  present  income  in  strengthening 
their  properties.  The  wisdom  of  their  course 
has  been  proven  too  many  times  to  need  demon- 
stration now. 


CHAPTER    VI. 

SO-CALLED  "WATERED"  STOCK. 

Most  of  the  literature  in  regard  to  railroads 
emanates  from  men  unfamiliar  with  their  affairs. 
It  is  as  a  rule  severely  critical.  Men  who  have 
filled  prominent  railroad  offices  without  being 
railroad  men  have  also  favored  us.  Their  views 
are  optimistic  and  afford  food  for  demagogues 
only.  Railway  men  have  little  leisure  to  devote 
to  abstract  thought.  Moreover,  the  labor  of  cor- 
recting the  misrepresentations  of  the  class  re- 
ferred to  is  too  Herculean  a  task  to  be  undertaken 
lightly.  Time  alone  is  equal  to  this. 

What  is  needed  in  discussing  railway  questions 
of  public  concern,  is  common  honesty  based  on 
experience  and  knowledge  of  economic  laws. 
Faithful  portrayal  is  impossible  otherwise. 

The  belief,  more  or  less  general,  that  the  stocks 
of  American  railroads  are  generally  watered  is 
due  to  lack  of  information.  The  subject  has 
been  much  harped  upon  and  is  a  fad.  As  a  pleas- 
antry it  is  well  enough,  but  seriously  it  is  wrong, 
because  not  true.  The  securities  of  American 
railroads  are,  as  a  rule,  bona  fide.  'Many  proper- 
ties are  not  fully  capitalized.  The  small  average 
cost  per  mile  is  sufficient  to  prove  this.  But  it  is 

(72) 


SO-CALLED  "WATERED"  STOCK.  73 

probable  that  the  charge  will  continue  to  be 
made  so  long  as  railroads  are  run  and  people  may 
attract  attention  by  misrepresenting  them.  The 
theme  is  an  endless  one  for  those  who  seek  'to 
catch  the  public  ear  through  its  passions  and  prej- 
udices. Millions  to  them  are  as  soap  bubbles, 
and  particular  instances  of  wrong  have  the  force 
of  universal  custom.  If  an  individual  railroad 
man  sins,  they  fasten  his  crime,  like  a  blanket, 
on  the  whole  human  race.  It  straightway  be- 
comes a  rallying  cry  and  a  means  of  spreading 
distrust.  Actual  instances  of  wrong-doing  are 
few  in  number  and  unimportant.  However,  they 
are  made  the  subject  of  general  accusations,  and 
in  that  form  serve  to  create  dissatisfaction  be- 
tween carrier  and  patron,  and  employer  and 
employe. 

Warfare  on  property  takes  on  many  aspects. 
It  is  never  open  and  manly;  always  insidious  and 
covert,  always  cowardly.  Whatever  its  aspect, 
its  purpose  is  bad,  its  aim  the  aggrandizement  of 
the  improvident  at  the  expense  of  the  industrious 
and  saving.  It  cannot  be  restricted  to  railway 
property.  If  encouraged,  it  will  ultimately  ex- 
tend to  manufactures,  newspapers,  banks,  farms 
and  other  industries.  It  is  anarchy.  As  we  sow, 
so  shall  we  reap. 

The  issuance  of  railway  stocks  and  bonds  in 
England  is  jealously  guarded  by  the  state. 
While  great  laxity  in  this  respect  has  existed  in 
the  United  States,  the  forbearance  has  as  a  rule 
been  fully  respected.  Good  business  usage  has 


74       FINANCING,  CONSTRUCTING,  MAINTAINING. 

governed  in  this  matter,  as  it  must  and  does  in  all 
things  where  men  deal  on  equal  terms  with  each 
other. 

The  capital  stock  of  American  railways  does 
not  bear  the  authoritative  stamp  of  the  govern- 
ment. This  has  undoubtedly  had  its  influence  in 
determining  owners  to  use  their  surplus  income 
in  many  cases  to  improve  and  strengthen  their 
property.  It  has  made  them  conservative,  as 
responsibility  always  does.  They  have  sought  to 
make  assurance  doubly  sure.  Undoubtedly  cases 
of  wrong-doing  have  occurred  and  will  continue 
to  occur  in  railway  practices,  including  those  of 
capitalizing  these  properties.  They  cannot  be 
prevented.  The  parties  in  fault  are  eventually 
the  greatest  sufferers.  Sins  of  this  kind  react  on 
properties  just  as  sins  react  on  men.  Atonement 
must  always  be  made  in  the  flesh. 

Many  makeshifts  are  necessary  in  connection 
with  railway  development  in  a  new  country  that 
are  unknown  in  older  and  wealthier  communi- 
ties. Thus,  bonuses  are  offered  and  discounts 
suffered  that  are  unnecessary  in  the  latter  case. 
But  no  honest  man  thinks  of  repudiating  a  note 
because  he  has  to  sell  it  at  a  discount.  In  old  and 
established  communities,  when  money  is  not 
forthcoming  it  is  evidence  that  the  field  is  not 
ripe  for  its  use.  It  is  different  in  new  countries. 
It  must  be  sought. 

Those  who  study  the  methods  of  a  railway 
company  become  admirers  of  its  adaptability  and 
skill.  Thus,  the  practice  of  established  railway 


SO-CALLED  "WATERED"  STOCK.  75 

corporations  of  buying  up  the  stock  of  other  and 
weaker  companies,  and  issuing  their  own  in  lieu 
thereof  (depositing  the  stock  of  the  purchased 
company  as  collateral),  while  much  criticised, 
is  business-like,  and  has  been  found  eminently 
useful.  It  is  also  a  common  practice  for  a  com- 
pany, in  extending  its  lines,  to  organize  a  new 
company,  the  stock  and  bonds  of  the  parent  com- 
pany being  issued  in  lieu  of  those  of  the  new 
company,  the  latter  being  deposited  with  a 
trustee.  The  securities  of  the  older  corporation, 
being  known,  can  be  sold  to  much  better  advan- 
tage than  the  new.  Now,  while  the  stock  and 
bonds  are  technically  duplicated,  they  are  not  so 
represented  in  the  market.  No  one  is  injured, 
while  everyone  is  benefited.  I  cite  this  particular 
practice  of  railroads,  which  has  been  somewhat 
severely  criticised,  as  an  illustration  of  many 
others  that  are  assailed  without  reason. 

In  some  instances  so-called  watered  stock  rep- 
resents the  premium  paid  for  the  risk  involved. 
To  illustrate,  we  will  suppose  that  money  in 
British  Columbia  is  worth  four  per  cent,  per 
month;  in  London  it  is  worth  four  per  cent,  per 
annum.  Why  the  difference?  Because  money 
is  scarce  in  British  Columbia,  and  the  risk  is 
greater,  or  not  so  well  known.  But  the  trans- 
actions that  occur  in  British  Columbia  are  just 
as  equitable  as  in  London,  and  must  be  respected 
the  same.  And  so  it  is  when  railroad  stocks  are 
sold  at  a  discount,  or,  indeed,  given  as  a  bonus  to 
purchasers  to  induce  them  to  buy  bonds.  The 


76       FINANCING,  CONSTRUCTING,  MAINTAINING. 

obligation  is  as  bona  fide  as  if  a  premium  had 
been  received  To  the  failure  on  the  part  of 
American  railroad  companies  to  capitalize  con- 
struction expenditures  as  they  arise  is  due  in 
some  part  the  misunderstanding  that  exists  in 
regard  to  our  so-called  watered  stock.  The  mis- 
understanding is  also  due  in  some  part  to  imper- 
fect bookkeeping.  In  other  countries  the  issue 
of  stocks  and  bonds  is  co-existent  with  the  im- 
provement. Both  can  be  seen  at  a  glance,  and 
no  one  dreams  of  denying  owners  this  right,  or 
of  referring  to  the  securities  as  fictitious. 

While  we  are  accustomed  to  look  upon  rail- 
roads in  use  as  finished,  they  are,  as  a  matter  of 
fact,  ever  in  a  state  of  growth.  Sometimes  the 
transformation  is  so  rapid  and  of  such  great  mag- 
nitude as  to  attract  attention.  Such  outlays,  it 
may  be,  are  singled  out  by  the  railroad  company 
and  embraced  in  its  returns  under  the  head  of 
construction,  and  capitalized.  This,  in  a  general 
way,  is  supposed  to  be  the  extent  of  a  railway 
company's  rights  in  this  direction.  As  a  matter 
of  fact,  however,  the  great  bulk  of  the  additions 
to  a  property  are  made  up  of  myriads  of  petty 
improvements,  so  small  as  to  escape  the  atten- 
tion of  everyone  but  the  accountant.  Tlxe  use  of 
two  nails  where  only  one  was  originally  charged 
to  construction  is  an  improvement,  and  affords 
the  basis  of  further  capitalization;  but  petty  items 
of  this  nature  have  been  entirely  overlooked,  be- 
ing embraced  bodily  in  the  operating  expense 
account. 


SO-CALLED  "WATERED"  STOCK.  77 

No  railway  is  so  perfectly  constructed  in  the 
first  instance  that  it  is  not  improved  by  the  add- 
ing of  new  ballast;  by  adjustment  of  grade;  by 
widening  of  cuts  and  ditches;  by  better  align- 
ment; by  improved  bridges  and  culverts;  by 
greater  weight  and  better  quality  of  rail ;  by 
added  office,  station  and  yard  facilities;  by  new 
machine  shops;  by  filling  up  of  grounds;  by  ac- 
cumulation of  personal  property,  and,  generally, 
by  the  substitution  of  appliances  of  modern  con- 
struction for  those  of  an  old  pattern.  Thus  prop- 
erties grow.  This  growth,  however,  may  not  be 
noted  in  the  returns,  the  whole  being  charged  up 
as  an  operating  expense.  In  such  case  the  own- 
ers of  the  property  have  advanced  the  money 
needed  to  make  the  improvements,  and  in  doing 
so  have  lessened  the  return  available  for  divi- 
dends on  their  capital  by  just  so  much.  It  is  in 
the  nature  of  a  loan.  Manifestly  it  is  their  right 
and  ^privilege,  at  their  pleasure,  to  require  a  re- 
turn of  the  amount  thus  loaned. 

In  those  cases  where  the  capital  of  a  railroad 
has  been  watered,  the  conservative  instincts  of 
subsequent  owners  generally  lead  them  to  make 
good  the  amount;  to  supplement  it  with  expend- 
itures for  construction  out  of  net  earnings.  The 
cases  are  extremely  rare  where  a  return  is  earned 
on  watered  values.  Such  securities  are  generally 
worthless  so  far  as  income  is  concerned  and  are 
so  esteemed.  They  have  no  effect  on  rates  what- 
ever. The  competition  of  markets,  not  the  actual 
or  assumed  cost  of  a  property,  determines  these.* 

*See  "  Economic  Theory  of  Kates." 


78       FINANCING,  CONSTRUCTING,  MAINTAINING. 

The  bonuses  which  must  be  paid  for  railroads 
and  other  improvements  in  a  new  and  stable 
country  cease  when  the  risks,  real  or  imaginary, 
that  attend  such  ventures  become  known.  These 
embarrassments  are  not  known  in  wealthy  coun- 
tries or  in  the  case  of  established  and  productive 
properties. 

When  net  earnings  are  used  for  construction 
purposes,  not  only  is  the  owner  entitled  to  repre- 
sentation therefor,  but  also  to  interest  thereon, 
as  in  the  case  of  the  original  investment.  He 
should  be  free  to  capitalize  the  outlay  at  his 
pleasure;  whenever,  in  fact,  his  interests  will  be 
best  conserved  thereby.  It  is  purely  a  practical 
question,  and  he  should  be  allowed  to  meet  it  in 
his  own  time  and  way.  We  have  no  more  right 
to  deprive  him  of  this  privilege  than  we  have  to 
rob  him  of  his  watch.  So  acute,  however,  has 
been  the  feeling  on  the  subject  that  the  most  ab- 
surd laws  have  been  passed  in  the  United  States 
regulating  such  matters.  Thus,  one  state  forbids 
railroad  companies  issuing  capital  stock  to  cover 
disbursements  for  construction,  but  allows  them 
to  issue  bonds  therefor.  This  utter  inability  of 
the  state  to  deal  with  an  economic  question  is  on 
a  par  with  the  whole  batch  of  laws. 


CHAPTER    VII. 

RAILWAY  CAPITAL — INVESTORS  MUST  NOT  BUY  WITH- 
OUT SCRUTINIZING,  NOR  HOLD  WITHOUT  GUARD- 
ING. 

Property  owners  are  the  same  tne  world  over. 
They  have  not  changed  since  men  emerged  from 
savagery.  Their  persistent,  aggressive  effort  to 
achieve  fortune  is  commendable.  What  one  pos- 
sesses others  strive  to  duplicate.  This  is  called 
enterprise.  Acquisitiveness  is  the  animating 
cause  of  commercial  activity.  Possession  of 
wealth  the  goal  of  mankind.  If  these  truths 
were  more  generally  kept  in  mind,  careless  and 
improvident  men  would  be  more  wary  in  making 
investments,  and  more  painstaking  in  looking 
after  investments  already  made. 

Those  who  have  money  to  invest  in  railroad 
securities  should  not  buy  without  investigating, 
nor  hold  without  guarding.  Men  who  own  valu- 
able horses  do  not  leave  them  unguarded.  In- 
vestors in  corporations  will  be  wise  if  they 
exercise  similar  foresight.  It  is  only  common 
business  prudence. 

As  long  as  men  buy  securities  without  intelli- 
gent investigation,  so  long  will  they  be  disap- 
pointed in  their  investments.  I  do  not  say  that 
securities  selling  below  par  or  at  merely  normal 


80       FINANCING,  CONSTRUCTING,  MAINTAINING. 

figures  may  not  be  valuable.  They  may  be  more 
desirable  than  those  selling  at  a  premium.  It  is 
in  judicious  selections  from  such  securities  that 
great  fortunes  are  often  built  up.  But  wise  men 
will  not  touch  a  security  without  careful  investi- 
gation. Those  who  do  are  reckless  gamblers  and 
unworthy  of  sympathy  if  their  ventures  turn  out 
unfortunately. 

Those  who  have  money  to  invest  will  also  be 
wise  in  avoiding  a  country  which  does  not  accord 
corporate  capital  the  same  impartial  treatment 
as  other  property.  A  country  animated  by  such 
a  spirit  is  as  unsafe  as  a  powder  magazine  in 
which  children  play. 

In  making  investments  in  railways  the  prop- 
erty into  which  it  is  proposed  to  buy  should  be 
scanned  with  reference  to  its  particular  merits 
and  demerits.  It  must  be  considered  generally 
and  specifically:  the  country  it  supplies,  its  reve- 
s  nues,  character  and  amplitude  of  its  construction, 
nature  and  extent  of  its  bonds,  stocks,  leases, 
floating  debt,  contracts,  agreements,  and  so  on. 
The  character  of  the  management,  its  adequacy, 
fitness  and  trustworthiness,  are  also  all  important. 
A  railway  with  an  inadequate  or  defective  gov- 
ernment is  as  untrustworthy  as  a  corrupt  or 
weak  civil  government.  All  these  details  must 
be  carefully  looked  after  by  investors  in  every 
country. 

Investors  resident  in  new  countries  are  more 
apt  to  neglect  necessary  precautions  than  in 
older  communities.  They  lack  the  wisdom  that 


PRECAUTIONS  FOR  INVESTORS.  81 

comes  only  with  experience.  In  England  share- 
holders in  corporations  consider  it  a  duty  to  be 
present  at  meetings,  and  their  sharp  criticism  is 
heard  in  every  assembly  of  this  kind.  In  Amer- 
ica the  owner  of  railroad  stock  rarely,  if  ever, 
goes  to  a  meeting  of  shareholders  unless  he  has 
sufficient  holdings  to  control  the  board  or  is  a 
director.  To  do  so  is  thought  intrusive.  This 
feeling  is  assiduously  cultivated  by  his  more 
robust,  aggressive  and  powerful  brothers  who 
have  control.  The  stockholder's  absence  is  grate- 
ful, his  presence  irritating.  This  is  natural. 
Criticism  is  always  offensive.  However,  stock- 
holders should  not  be  deterred  from  doing  their 
duty.  No  one  should  ever  give  a  proxy  if  he  can 
be  present  personally.  It  is  common  sense,  sim- 
ply business  prudence  not  to  do  so.  The  practice 
should  not  be  waived  in  the  case  of  railways 
any  more  than  in  the  case  of  manufactories, 
breweries  and  banks.  It  is  a  duty  property  hold- 
ers owe  to  themselves  and  to  the  community  at 
large. 

While  men  should  not  buy  railway  securities 
without  investigation,  they  should  not  sell  with- 
out reason.  Mere  rumor  should  not  disturb  them. 
Stocks  and  bonds  are  ever  the  subjects  of  manip- 
ulation. The  effort  to  induce  holders  to  sell, 
when  they  ought  to  hold,  never  for  a  moment 
ceases.  Representations  conform  to  these  ends 
and  markets  are  manipulated  accordingly.  Spec- 
ulative classes  are  kept  alive  by  the  dupes  who 
believe  these  misrepresentations. 

6    Vol.  3 


82       FINANCING,  CONSTRUCTING,  MAINTAINING. 

Much  good  advice  has  been  given  the  English, 
Dutch  and  Germans  in  reference  to  their  invest- 
ments in  other  countries,  especially  America.  I 
do  not  remember,  however,  to  have  noticed  any 
reference  to  a  safeguard  of  the  utmost  impor- 
tance to  them,  namely,  proper  representation  on 
the  ground.  The  losses  foreigners  have  suffered 
in  America  have  not  been  the  result  so  much  of 
dishonesty  or  trickery  on  the  part  of  local  own- 
ers'and  managers,  as  of  the  gross  stupidity  of 
those  who  represent  foreign  holders.  These  rep- 
resentatives are  generally  of  the  same  nationality 
as  their  principals,  and,  as  a  rule,  know  nothing 
about  American  methods  or  men,  and  are  not  in 
sympathy  with  its  people.  The  honorable  ex- 
ceptions to  this  rule  only  make  it  the  more 
noticeable. 

As  a  rule  the  men  sent  to  represent  foreign 
capital  know  little  about  the  business  they  are 
hired  to  look  after,  and  their  avenues  of  informa- 
tion are  neither  influential  nor  trustworthy;  cer- 
tainly not  such  as  to  secure  the  objects  they  have 
in  view.  Foreigners  investing  in  America  or  in 
any  country  will  find  it  to  their  interest  to  select 
local  agents  from  among  reputable,  practical 
business  men,  and  in  general  those  who  do  not 
solicit  such  trusts.  Selection  should  be  made  if 
practicable  of  men  already  employed  in  similar 
work.  In  order  to  find  fit  agents,  foreign  invest- 
ors must  visit  the  country  and  select  their  repre- 
sentatives from  among  those  who  possess  the 
confidence  of  the  business  world.  Such  men  do 


PRECAUTIONS  FOR  INVESTORS.  83 

not  go  abroad  to  solicit  trusts.  Nor  are  they  to 
be  found  in  the  lobbies  of  hotels.  The  same  rule 
must  be  observed  that  is  followed  in  selecting  a 
cashier  or  superintendent.  If  investors  will  do 
this  they  will  not  have  to  complain  of  being 
over-reached  by  local  owners  and  managers. 

The  men  that  English,  German  and  Dutch 
investors  have  sent  abroad  as  agents  have  not, 
generally  speaking,  been  such  as  to  justify  a 
reputation  for  shrewdness  or  business  knowl- 
edge. Investments  will  not  be  wisely  placed  nor 
securely  held  until  they  change  their  methods  in 
this  respect. 

In  many  cases  the  representatives  of  foreign 
holders  in  America  have  been  the  unconscious 
dupes  of  those  who  are  not  trusted  by  their  own 
neighbors;  foreigners  in  control  of  stable  com- 
panies in  America  have  not  too  often  been  able 
to  maintain  them;  when  they  have  controlled 
weak  companies  they  have  lacked  the  skill  to 
strengthen  them.  In  the  majority  of  cases  their 
purchases  have  been  such  as  attract  the  credulous 
and  unwary;  of  those  who  look  for  exorbitant 
returns;  of  those  who  seek  a  royal  road  to  wealth; 
those  who  do  not  observe  the  common  precau- 
tions of  business  men. 

But  if  those  who  represent  foreign  investors  in 
other  countries  lack  ability,  experience,  adapta- 
bility, and  oftentimes  common  honesty,  how  shall 
we  characterize  many  Americans  who  visit  Eu- 
rope to  negotiate  loans?  They  are  rarely  repre- 
sentative and  are  not  trusted  by  their  owu 


84       FINANCING,  CONSTRUCTING,  MAINTAINING. 

countrymen.  Birds  of  passage,  their  migratory 
errands  too  often  indicate  a  lack  of  capital  at 
home  that  does  not  exist.  While  many  trust- 
worthy men  go  upon  such  errands,  many  of 
them  are  unworthy  to  be  trusted.  They  sin 
doubly,  first  in  inducing  people  to  invest,  and 
afterward  in  representing  them.  They  first  fleece 
the  foreigner  by  misrepresentations  and  rob  him 
afterward  as  agents.  What  are  we  to  think  of 
the  acumen  of  men  who  have  been  so  systemati- 
cally imposed  upon  as  the  English,  Hollanders 
and  Germans  have  in  this  respect? 

Generally  speaking,  foreigners  will  exercise  a 
wise  discretion  if  they  decline  to  buy  into  enter- 
prises to  such  an  extent  as  to  give  the  properties 
the  reputation  of  being  controlled  by  them.  Such 
reputation  may  prove  hurtful.  The  more  unob- 
trusively foreign  investments  are  made  and  held, 
the  more  likely  they  are  to  be  satisfactory  and 
the  less  likely  they  are  to  occasion  owners  anx- 
iety. Not  that  there  is  necessarily  any  enmity 
toward  foreigners,  but  patriotic  prejudices  run 
high  among  every  people,  and  wise  men  do  not 
run  counter  thereto  in  business  matters  if  they 
can  avoid  it. 


CHAPTER    VIII. 

DIFFERENT  KINDS  OF  SHARES '  RETURNS  THEREON ; 
TRANSFER  BOOKS,  ETC. — CAPITAL  STOCK  AND 
SHAREHOLDERS. 

As  I  have  pointed  out,  the  practice  in  England 
in  capitalizing  railway  property  is  to  sell  capital 
stock  (shares)  to  such  an  extent  as  to  constitute 
a  substantial  investment,  and  a  material  security 
to  the  holders  of  debentures.  It  will  be  a  good 
rule  to  follow  in  America  hereafter,  in  the  in- 
auguration of  new  companies  not  backed  by  old 
and  well  established  corporations.  The  practice 
in  the  beginning  was  to  pay  a  nominal  sum  on 
the  stock,  and  issue  bonds  to  cover  the  balance. 
The  custom  was  a  necessity,  and,  under  the  cir- 
cumstances, perfectly  proper.  I  have  no  criticism 
to  make.  Other  countries  cannot  go  far  wrong 
under  similar  circumstances  if  they  follow  the 
practices  of  America.  Its  railroads  have  been 
admirably  managed  from  the  first.  A  very  clever 
Englishman*  has  written  a  book  of  advice  and 
warning  to  his  countrymen  who  have  investments 
in  America.  He  might  have  claimed  for  it  a 
wider  field.  It  is  in  the  main  good.  But  there 
is  no  cut  and  dried  formula  that  can  be  followed 
in  capitalizing  a  property  or  in  making  invest- 

*  John  Swann,  M.  A. 

(85) 


86       FINANCING,  CONSTRUCTING,  MAINTAINING. 

merits  in  it  afterward.  I  have  referred  to  this 
phase  of  the  subject  very  fully  in  another  chapter. 

The  total  cost  of  a  company's  property,  includ- 
ing the  supplies  and  working  fund  required  in 
its  operation,  is  the  proper  basis  of  its  capital- 
ization. In  the  United  States  this  is  represented 
largely  by  mortgage  bonds  and  what  is  called 
capital  stock.  The  latter  should  more  properly 
be  called  shares  capital.  The  term  capital  stock 
in  the  sense  we  use  it  is  misleading,  because  ap- 
plied to  a  security  that  represents  only  a  fraction 
of  the  cost. 

In  England  they  speak  of  the  capital  stock  of 
railways.  Never  of  cost.  The  former  at  one 
time  implied  the  latter. 

Every  company  should  be  privileged  to  cause 
the  cost  of  its  property  to  be  represented  either 
with  interest  bearing  bonds  or  shares,*  any  excess 
of  cost  over  such  issues  to  stand  upon  the  books 
until  such  time  as  the  proprietors  see  proper  to 
give  it  representation;  it  is  a  part  of  the  cap- 
ital as  much  as  the  first  dollar  paid  toward  the 
venture. 

Whatever  a  company  earns  over  its  oper- 
ating expenses,  taxes,  rentals,  interest,  and  other 
accounts  chargeable  against  income,  belongs  to 
the  owners  of  its  shares,  to  be  equitably  appor- 
tioned among  them.  It  is  called  a  dividend. 
This  division  is  in  many  cases  delayed.  In  some 
instances  it  is  never  made,  but  withheld  for  use 

*The  English  speak  of  the  obligations  of  governments  as 
stocks;  the  securities  of  railroads  as  shares. 


THE  DIFVERKXT  KIXDS  <>!•'  SHARKS.  87 

in  improving  the  property.  However,  it  is  in  the 
nature  of  a  loan,  and  should  not  be  covered  up  in 
the  accounts  nor  lost  sight  of.  It  is  an  obliga- 
tion due  to  the  shareholder,  the  same  as  a  note 
of  hand,  payable  when  the  exigencies  of  business 
will  permit. 

A  majority  of  the  shares  of  the  capital  stock  of 
a  property  (or  a  majority  of  those  voting,  accord- 
ing to  the  by-laws  of  the  company)  elect  its 
directors.  These  control  its  operations  for  the 
period  of  time  for  which  they  are  elected.  In 
the  event  of  foreclosure  and  sale  of  a  property, 
the  shareholders  (who  are  the  company)  possess 
the  right  of  redemption,  but  in  the  event  this 
right  is  not  exercised,  their  shares  may  become 
invalid. 

The  par  value  of  a  share  of  capital  stock  in  an 
American  railroad  is  usually  one  hundred  dollars. 
In  some  cases  the  shares  are  fifty  dollars  each. 
Frequently  two  kinds  of  shares  (preferred  and 
common)  are  issued.  Their  printed  form  is  sub- 
stantially alike.*  They  have,  however,  different 

*  Form  of  certificate  of  capital  stock: 

No.  980.  PKEFEBKED.  100  Shares. 

Capital  Stock.  Shares  $100  each. 

MINNEAPOLIS  &  SOUTH  PACIFIC   RAILROAD  CO. 

STATE  OF  MINNESOTA. 

THIS  CERTIFIES  that  JOHN  DOE  is  the  owner  of  ONE  HUNDRED 
Shares  of  the  Preferred  Capital  Stock  of  the  Minneapolis  &  South  Pacific 
Railroad  Company,  transferable  on  the  books  of  the  Company  on  surrender 
of  this  certificate. 

WITNESS  the  signature  of  the  President  and  Secretary. 

Dated  April  19,  1880. 
HUGH  GRAY,  Secretary.  C.  G.  PHILLIPS,  President. 

The  certificates  for  common  shares  are  similar  to  the  above, 
except  that  the  word  Common  is  substituted  for  Preferred. 


88        FINANCING,  CONSTR UCT1XG,  MAINTAIXINi i . 

rights.  The  higher  grade  is  called  preferred 
stock  or  preference  shares,  the  subordinate  grade, 
common  or  ordinary  stock.  The  rights  these 
shares  severally  enjoy,  and  the  maximum  amount 
of  each  that  may  be  issued,  are  set  forth  in  the 
articles  of  incorporation,  and  this  limit  cannot 
be  exceeded  without  formal  consent  of  the  par- 
ties in  interest. 

Many  companies  have  more  than  two  classes 
of  shares.*  The  relation  they  sustain  to  each 
other  is  determined  by  the  circumstances  that 
necessitated  the  diversity  of  interest.  When  a 
company  in  poor  credit  is  compelled  to  raise 
money,  the  best  terms  it  can  get  are  accepted; 
sometimes  mortgage  bonds  are  thus  created; 
sometimes  new  shares  are  issued  (at  a  great  dis- 
count, perhaps),  which  shares,  by  consent  of  the 
holders  of  existing  securities,  frequently  take  pre- 
cedence of  prior  issues.  There  is  no  fixed  value. 
It  is  in  such  ways  that  different  classes  of  shares 
and  bonds  come  into  existence.  The  rights  en- 
joyed by  holders  of  preferred  and  common  shares, 
on  different  roads,  are  rarely  the  same.f 

*  The  Grand  Trunk  Railway  Company,  of  Canada,  has  five, 
viz.:  Ordinary  Stock;  Guaranteed  Four  Per  Cent.;  First  Prefer- 
ence; Second  Preference;  and  Third  Preference.  It  has,  be- 
sides, various  kinds  of  bonds. 

f  The  Chicago,  Milwaukee  &  St.  Paul  Company's  preferred 
shareholders  are  entitled  to  an  annual  dividend  of  seven  per 
cent,  before  a  dividend  can  be  paid  on  the  common  shares.  The 
preferred  shares  of  the  Lake  Shore  &  Michigan  Southern  Rail- 
way (which  amount  to  only  $533,500)  are  entitled  to  an  annual 
dividend  of  ten  per  cent,  on  their  par  value  before  the  ordinary 
shares  can  receive  any  return.  No  dividend  can  be  paid  on  the 


THK  DIFFERENT  KINDS  OF  SHARES.  89 

When  there  are  two  classes  of  stock,  the  pre- 
ference usually  extends  no  further  than  a  division 
of  net  earnings.  Thus  while  the  holders  of  pre- 
ferred stock  may  be  entitled  to  a  certain  return 
before  inferior  shares  can  receive  anything,  still, 
in  the  event  the  property  is  sold,  the  surplus, 
after  satisfying  the  mortgage  and  other  debts,  is 
divided  equally  among  all  classes  of  shareholders. 
In  some  instances,  however,  the  rights  of  the  pre- 
ferred holders  extend  to  a  division  of  the  property. 

Dividends  are  declared  by  the  board  of  direct- 
ors. The  meeting  at  which  a  dividend  is  declared 
must  be  legally  convened  and  must  in  all  respects 
conform  to  the  statutes  and  the  company's  by- 
laws. The  amount  of  the  contemplated  dividend 
being  fixed  by  the  board,  it  declares  .how  it  shall 
be  paid  (whether  in  cash,  in  shares  or  in  bonds) 
and  when.  It  also  fixfcs  the  date  when  the  books 
in  which  transfers  of  stock  are  recorded  shall  be 
closed  and  when  they  shall  be  reopened. 

Dividends  are  paid  to  the  order  of  the  persons 
who  appear  upon  the  stock  ledger  as  owners  at 
the  time  the  books  are  closed. 

A  period  averaging  from  ten  to  thirty  days 
usually  elapses,  between  the  declaration  of  a  divi- 
dend and  the  closing  of  the  books.  The  reason  is 
that  there  are  many  shares  passing  from  hand  to 
hand  (as  they  are  bought  and  sold)  that  have  not 


common  shares  of  the  North-Western  road  during  any  year,  out 
of  the  receipts  of  such  year,  until  seven  per  cent,  has  been 
divided  among  the  holders  of  preferred  shares.  Other  differ- 
ences, still  more  marked,  might  be  cited. 


90        FINANCING,  CONSTRUCTING,  MAINTAINING. 

been  transferred  on  the  books.  When  a  certifi- 
cate is  sold  by  the  original  holder  the  power  of 
attorney  on  the  back  is  signed,  in  blank,  by  him.* 
This  enables  the  holder,  whoever  he  may  be,  to 
take  it  to  the  office  of  the  registrar  at  any  time 
he  pleases  and  have  it  transferred.  But  shares 
frequently  change  hands  many  times  without 
transfer  of  ownership  appearing  on  the  books. 

When  a  dividend  is  declared,  every  person  who 
owns  a  certificate  registered  in  the  name  of  some 
one  else  usually  (but  not  necessarily)  has  it  trans- 
ferred. It  is  in  order  to  facilitate  these  transfers 
that  a  period  of  time  is  allowed  between  the 
declaration  of  a  dividend  and  the  closing  of  the 
books.  While  the  books  are  closed  details 
regarding  payment,  such  as  the  drawing  of 
checks,  etc.,  are  performed. 

Corporations  are  required  by  law  to  give  notice 
of  the  payment  of  dividends;  also  of  meetings  of 
stockholders.  They  are  not  allowed  to  close 
their  stock  books  without  giving  public  notice  in 
advance,  specifying  the  date  the  books  are  to  be 
closed,  when  they  will  be  reopened,  and  the  reason 


*  Form  of  Transfer  and  power  of  attorney  printed  on  back  of 
certificate  of  stock: 

For  value  received do  hereby  sell,  transfer  and  assign  to 

the  within  mentioned  Shares  of.Stock,  and  do  hereby  constitute  and  appoint 

as Attorney,  irrevocably,  to  transfer  said  stock  on 

the  books  of  the  within  named  Company,  and  to  make  and  execute  all  neces- 
sary acts  of  assignment  and  transfer  required  by  the  regulations  and  by-laws 
of  said  Company  either  in  person  or  by  such  other  Attorney  or  Attorneys  as 
may  appoint  or  substitute  for  that  purpose. 

Witness hand  and  seal  this day  of 18.... 

Signed  and  Delivered  in  the  presence  of 

(Thos.  Robinson.)  JAMES  JONES. 


THE  DIFFERENT  KINDS  OF  SHARES.  91 

why  they  are  closed.  A  period  of  from  thirty  to 
forty  days  generally  elapses  between  the  closing 
and  reopening  of  the  books  for  a  meeting  of  stock- 
holders. The  stock  books  are  closed  preparatory 
to  such  meeting  in  order  that  a  correct  list  of 
those  legally  entitled  to  vote  may  be  made. 
Holders  of  stock  are  entitled  to  one  vote  for  each 
share  standing  in  their  names  when  the  books 
are  closed.  During  the  time  the  stock  books  are 
closed  no  transfer  of  shares  can  be  made  thereon. 


CHAPTER  IX. 

DETAILS   OF    RAILWAY    BONDS,    LEASES,   ETC. 

Bonds  issued  in  the  United  States  for  the  pur- 
pose of  providing  the  means  to  build  and  equip 
railroads  are  called  the  Funded  Debt.  They  are 
an  absolute  lien,  and,  in  the  event  the.  interest  or 
principal  is  not  paid  as  agreed,  the  property  may 
be  foreclosed  and  sold  to  the  highest  bidder. 
Bonds  are  commonly  signed  by  the  president  and 
secretary  and  countersigned  by  the  trustee.  The 
latter  is  the  contingent  agent  of  the  holder. 

Bonds  vary  in  amount  from  one  hundred  to  one 
hundred  thousand  dollars,  according  to  the  needs 
of  the  occasion. 

When  there  is  more  than  one  mortgage  upon  a 
property,  the  relation  of  the  mortgages  to  each 
other  is  commonly  indicated  by  their  designation, 
as  first,  second,  third  and  so  on.  It  frequently 
occurs  that  a  mortgage  \vill  be  a  first  lien  upon 
one  piece  of  road  and  occupy  a  secondary  place 
elsewhere.  Each  bond  recites  upon  its  face  the 
property  it  covers  and  the  rights  its  holders 
possess. 

Owners  are  called  bondholders.  Sometimes  a 
company  sells  its  bonds  directly  to  investors,  but 
more  frequently  through  brokers.  In  the  latter 


DETAILS  OF  RAIL  WA  Y  BONDS,  LEASES,  ETC.       9$ 

case  a  commission  is  paid.  Bonds  run  for  various 
periods  from  one  year  upwards. 

To  enable  bondholders  the  better  to  protect 
their  interests  they  are  sometimes  allowed  to 
vote  at  meetings  the  same  as  stockholders.  Such 
a  course  insures  a  very  conservative  management, 
as  it  is  the  interest  of  bondholders  to  divide  as 
little  of  the  surplus  as  possible  among  stock- 
holders, and  expend  as  much  as  possible  in  im- 
proving and  building  up  the  property,  every 
dollar  thus  expended  adding  so  much  to  the 
security  of  the  bondholder. 

The  necessities  of  a  company  are  sometimes 
such  as  to  compel  it  to  mortgage  its  income  in 
advance;  i.  e.,  the  balance  that  will  be  left  after 
meeting  existing  obligations.  Such  securities  are 
called  Income  Bonds.  Specific  articles  of  prop- 
erty, such  as  a  building,  bridge,  engine,  car  or 
piece  of  machinery,  are  also  sometimes  sepa- 
rately mortgaged.  Mortgages  of  this  character, 
as  well  as  those  based  on  income,  generally  run 
only  for  a  short  period. 

The  extent  to  which  a  road  may  with  propri- 
ety be  bonded  depends,  of  course,  upon  its  net 
receipts.  Great  conservatism  is,  so  far  as  pos- 
sible, exercised.  The  multitude  of  properties 
that  have  passed  into  hands  of  receivers  repre- 
sent risks  more  or  less  well  understood  from  the 
start. 

There  are  oftentimes  many  distinct  mortgages 
upon  a  piece  of  property.  A  fifth  mortgage  does 
not  seem  to  be  a  very  valuable  security,  yet  it 


94       FINANCING,  CONSTRUCTING,  MAINTAINING. 

may  be  preferable  to  a  first  mortgage  in  another 
case.  Its  obligations  may  be  promptly  met,  and 
it  may  command  a  premium  in  the  market,  while 
a  first  mortgage  in  another  case  is  discredited. 
The  mortgages  on  a  property  usually  represent 
its  different  stages  of  progress,  and  are,  as  a 
rule,  evidences  of  prosperity  rather  than  the 
contrary. 

The  objection  to  a  mortgage  on  a  railway  is 
its  lack  of  flexibility.  It  makes  no  distinction 
between  a  property  of  no  present  or  prospective 
value  and  one  requiring  only  time  to  build  it  up. 
Many  of  the  mortgages  that  have  been  foreclosed 
and  the  properties  sold  at  a  sacrifice,  would  have 
been  paid  in  full,  with  interest,  if  the  owners  had 
been  compelled  to  wait.  For  this  reason  a  mort- 
gage is  too  exacting.  Instead  of  protecting  its 
holders  it  may  be  made  the  means,  under  false 
representations,  perhaps,  of  frightening  them  into 
sacrificing  their  investment. 

Every  mortgage  provides  for  one  or  more 
trustees,  whose  duty  it  is,  if  the  interest  and 
principal  are  not  paid  when  due,  or  within  a 
specified  time  thereafter,  to  advertise  and  sell 
the  property,  if  called  upon  by  the  holders  of  the 
bonds.  The  manner  and  form  of  action  are  pre- 
scribed. The  minimum  amount  of  bonds  re- 
quired to  compel  action  upon  the  part  of  the 
trustee  is  also  indicated.  This  amount  is  com- 
monly made  so  small  as  to  protect  all  the  hold- 
ers. In  the  event  of  default  the  trustee  may,  of 
his  own  volition  in  many  cases,  go  ahead  and 


DETAILS  OF  RAIL  WA  Y  BONDS,  LEASES,  ETC.       95 

foreclose  without  being  called  upon  by  holders. 
He  is  supposed  to  act  always  in  their  interests. 

Mortgages  take  precedence  according  to  their 
dates.  Thus,  the  foreclosure  of  a  third  mortgage 
does  not  affect  those  of  a  prior  date.  But  the 
foreclosure  of  a  first  mortgage  invalidates  all 
others.  If,  however,  there  remains  any  surplus 
over  and  above  the  amount  required  to  satisfy 
such  mortgage,  it  must  be  divided  among  the 
holders  of  the  next  succeeding  mortgage,  and  so 
on  until  it  is  exhausted.  In  the  event  of  the 
foreclosure  of  a  first  mortgage,  or  of  any  mort- 
gage, the  holders  of  the  next  succeeding  mortgage 
usually  redeem  the  property  if  its  worth  justifies 
such  a  course,  so  as  to  save  their  interest  in  the 
property.  In  the  event  the  requirements  of  an 
inferior  mortgage  are  not  satisfied,  the  holders  of 
such  mortgage  have,  in  some  cases,  the  right  to 
compel  the  holders  of  prior  mortgages  to  become 
parties  to  foreclosure  proceedings;  thus  forcing 
the  holders  of  such  prior  bonds  to  accept  pay- 
ment for  the  same  in  advance  of  the  time  orig- 
inally specified. 

Debenture  stock  is  a  favorite  form  of  security 
in  Great  Britain.  It  has  a  fixed  rate  of  interest 
and  is  a  positive  lien  upon  the  property,  but  there 
is  no  trustee,  no  definite  form  of  procedure  in- 
volving the  whole  issue  in  case  of  default.  A 
holder  can,  if  his  interest  is  not  paid,  levy  upon 
the  company's  property  wherever  found  and  place 
his  name  upon  it,  and  hold  it  until  his  claim  is 
satisfied.  Co-operation  with  other  holders  is  not 


96        FltfANCltfG,  CONSTRUCTIXG,  MAIXTAIXIXd. 

obligator}7,  and  the  sale  of  the  property  proceeds 
no  farther  than  is  necessary  to  reimburse  the 
disaffected  holder. 

In  some  portions  of  the  United  States  mort- 
gages must  be  recorded  upon  the  books  of  the 
recorder  of  deeds  or  other  designated  officer  for 
each  county  in  which  the  property  is  located.  In 
other  cases  it  is  only  necessary  to  record  the 
mortgage  at  the  state  capital.  An  unrecorded 
mortgage  has  no  value  as  against  a  recorded 
mortgage  or  the  judgment  of  a  court. 

Attached  to  every  mortgage  bond  issued  by 
railroad  companies  are  diminutive  notes  of  hand 
called  coupons  of  the  general  form  indicated 
below.*  Each  installment  of  interest,  whether 
payable  annually,  semi-annually,  or  quarterly,  is 
represented  by  one  of  these  coupons.  Thus  the 
number  of  coupons  attached  is  sometimes  very 
great.  The  coupon  when  due  is  in  the  nature  of 
a  sight  draft  (payable  to  bearer)  on  the  company 
issuing  it. 

Every  bond  specifies  on  its  face  where  the 
interest  and  principal  are  payable  and  the  form 
of  payment. 


*  On  the  first  day  of  January,  A.  D 

THE  MINNEAPOLIS  &  SOUTH  PACIFIC  RAILWAY  COMPANY 

Will  pay  to  the  bearer  hereof  THIRTY- FIVE  DOLLARS,  IN  GOLD  COIN, 
at  its  office  or  agency,  in  the  city  of  New  York,  or,  at  its 
option,  SEVEN  POUNDS  STERLING,  at  the  office  or 
agency  of  the  BANK  OP  MONTREAL,  in  the  city  of 
$35    London,  England,  being  SIX  months1  interest  due  on      J&J 
that  day  on  its  ($1000)  First  Mortgage  Gold  Bond,  No. 
230.    Dated  JUNE  21st.  1879.  L.  C.  JONES, 

SECBETAKY. 


DETAILS  OF  RAIL  WA  Y BONDS,  LEASES,  ETC.       97 

Registered  bonds  are  different  from  coupon 
bonds.  Both  the  principal  and  interest  are  pay- 
able to  order  and  can  only  be  collected  by  the 
person  in  whose  name  they  are  registered  upon 
the  books  of  the  corporation.  This  name  is 
inserted  in  the  body  of  the  instrument.  No 
coupons  are  attached  to  a  registered  bond.  When 
interest  matures  it  is  forwarded  to  the  address  of 
the  person  in  whose  name  the  bond  is  registered. 
The  expense  and  annoyance  of  transferring  reg- 
istered bonds  when  they  change  hands  detract 
from  their  market  value.  They  are  never  issued 
except  upon  request. 

The  bonds  of  railroad  companies  and  those  of 
the  government  are  much  alike  in  form.  The 
manner  of  paying  interest  is  also  much  the  same. 

The  interest  on  different  kinds  of  bonds  does 
not  fall  due  at  the  same  time.  The  convenience 
of  a  company  is  followed  in  fixing  the  date  for 
paying  interest.  In  some  cases  interest  is  paid 
quarterly.  The  general  rule,  however,  is  to  pay 
it  semi-annually. 

Interest  on  bonds  constitutes  a  separate  item 
in  the  income  (profit  and  loss)  account.*  It  is 
called,  with  rentals  and  guaranteed  dividends,  a 
fixed  charge. 

Such  are  the  details  connected  with  mortgage 
bonds.  When  properties  are  leased,  the  amount 
paid  as  rental  takes  the  place  of  interest  on  bonds 

*  The  returns  of  the  United  States  government  contemplate 
that  the  amount  shall  be  entered  on  the  books  of  a  company 
each  month  as  it  accrues. 

7    Vol.  3 


98       FINANCING,  CONSTRUCTING,  MAINTAINING. 

in  the  returns  of  the  lessee.  In  some  cases,  how- 
ever, the  interest  on  the  funded  debt  of  the  prop- 
erty leased  is  assumed  by  the  lessee,  in  which 
case  it  may  thus  appear  in  the  returns  in  lieu  of 
rental  as  part  or  full  payment  of  rental. 

The  same  diversity  that  is  noticeable  in  other 
operations  of  railways  characterizes  their  leases. 
A  description  of  them  is  impracticable.  Their 
scope  and  purpose  find  expression  in  the  provis- 
ions that  hedge  them  about.  The  consideration 
is  never  the  same  in  any  two  cases,  because  the 
circumstances  under  which  properties  are  leased 
are  never  the  same.  The  manner  of  paying  rentals 
also  varies.  Sometimes  a  fixed  sum  is  paid,  but 
more  frequently  the  amount  is  dependent  upon 
the  earnings  of  the  property  or  on  the  number  of 
passengers  or  tons  of  freight  transported.  Some- 
times it  is  based  on  the  earnings  per  train  mile. 
Whatever  it  may  be,  it  is  clearly  defined  in  the 
instrument,  which  also  fixes  the  manner,  time  and 
place  of  payment.  As  the  value  of  a  railroad  is 
dependent  upon  the  fidelity  and  skill  exercised  in 
its  operation  and  maintenance,  the  obligation  of 
the  lessee  to  manage  so  as  to  secure  the  best  re- 
sults is  usually  set  forth  in  the  instrument  at  great 
length.*  Arbitrators  are,  as  a  rule,  provided  for 

*  I  find  the  following  in  reference  to  this  phase  of  the  sub- 
ject in  an  old  lease  :  "  And  the  lessee  agrees  that  at  all  times 
during  the  existence  of  this  agreement  he  will  faithfully  main- 
tain and  efficiently  operate  said  railroad,  and  keep  the  same  in 
good  repair  and  condition,  with  appurtenances  and  incidents 
.  .  .  furnish  and  supply  at  all  times  a  sufficient  and  ample 
amount  of  motive  power,  and  passenger  and  freight  and  other 


DETAILS  OF  RAILWA  Y  BONDS,  LEASES,  ETC.       99 

in  every  lease  (in  the  event  differences  should 
arise),  the  manner  of  their  appointment  and  the 
rules  governing  their  action  being  carefully  pre- 
scribed. The  lessee  usually  obligates  himself  to 
pay  the  taxes  on  the  property  leased  and  make 
full  returns  of  its  affairs  to  the  lessor,  the  latter 
reserving  the  right  to  examine  the  books  and  ac- 
counts of  the  lessee  at  pleasure.  It  is  the  duty  of 
the  lessor,  as  a  rule,  to  keep  up  the  legal  organi- 
zation of  the  property.*  He  is  also  required  to 

cars,  to  do  advantageously  and  in  a  proper  manner  all  the 
freight  and  passenger  business  which  may  be  offered  or  pro- 
cured for  said  road,  and  which  may  be  secured  to  the  said  line 
.  and  will  in  all  ways  furnish  all  needful  and  proper 
facilities  for  the  increasing  business  of  said  line,  and  the  grow- 
ing demands  of  the  country  by  its  increasing  production,  or  by 
the  extension  of  said  railroad  communication;  and  will  further 
adopt  such  judicious  and  efficient  measures  as  may  tend  to  make 
the  said  line  a  main  and  prosperous  line ;  the  lessee  further 
agrees  that  during  the  term  hereby  granted,  he  will  operate, 
maintain,  and  keep  in  repair  the  said  demised  premises,  pay  all 
taxes  assessed  upon  it,  and  indemnify  and  save  harmless  the 
said  lessor  against  and  from  all  costs,  expenses  and  damages 
growing  out  of  the  maintaining,  repairing,  operating  and  using 
the  said  road." 

*  "  And  the  lessors  hereby  covenant  and  agree  that  they  will, 
during  the  term  in  which  the  provisions  of  this  indenture  shall 
be  in  force,  preserve  and  continue  the  legal  organization  of  said 
leased  road ;  will  hold  meetings,  keep  records,  pass  votes,  and 
appoint  officers,  so  far  as  necessary  to  enable  the  lessees  to 
carry  into  full  force  and  effect  the  objects  of  this  instrument ; 
and  that  they  will  give  such  further  assurances  as  may  be  neces- 
sary therefor,  and  that  they  will  at  any  and  all  times  hereafter, 
when  thereunto  requested  by  the  lessees,  use  their  corporate 
powers,  and  do  and  perform  in  their  own  corporate  name,  any 
and  all  acts  and  things  that  may  be  necessary  fully  to  protect 
said  lessees  in  the  full  enjoyment  of  all  the  rights  and  privi- 
leges herein  grunted." — Extract  from  old  lease. 


100     FINANCING,  CONSTRUCTING,  MAINTAINING. 

maintain  the  lessee  in  peaceable  possession  and 
pay  all  liens  or  incumbrances  on  the  property 
not  otherwise  provided  for.*  In  addition  to  the 
practice  of  leasing  of  railroads  as  a  whole,  many 
leases  are  made  to  cover  particular  objects,  such 
as  the  use  of  tracks,  terminals,  buildings  and 
docks.  In  this  way  two  or  more  companies  fre- 
quently use  properties  in  common. 

""And  the  lessors  further  covenant  and  agree,  that  they 
will  at  all  times  protect  the  lessees  in  the  quiet  possession  and 
enjoyment  of  the  premises  and  rights  hereby  granted,  or  in- 
tended so  to  do,  on  said  line  of miles,  and  will  assume 

and  pay  all  liens  and  incumbrances  at  any  time  found  to  exist 
thereon,  with  all  costs,  damages,  and  legal  charges  by  reason 
th  of."— Old  lease. 


CHAPTER  X. 

PARTICULARS   OF   SINKING    FUNDS. 

Mankind  has  only  a  vague  idea  of  what  con- 
stitutes a  sinking  fund.  Many  who  are  otherwise 
attentive  to  what  transpires  about  them  refuse 
to  consider  the  term  at  all  when  they  meet  it  in 
print,  but  dodge  it  as  they  would  a  weak  spot  in 
the  ice.  They  look  upon  it  as  an  enigma  of 
finance  that  only  a  few  favored  mortals  may 
understand.  Webster,  defining  the  .verb  "sink," 
says,  "To  cause  to  sink;  to  put  under  water;  to 
immerse  in  water,  as  to  sink  a  ship;  to  depress; 
to  make  by  digging  or  delving,  as  to  sink  a  pit  or 
well."  This  explanation,  though  lucid,  affords  no 
clue  to  the  term  used  in  the  vernacular  of  corpo- 
rations. 

A  sinking  fund  is  something  set  apart  for  a 
particular  purpose.  It  does  not  necessarily  con- 
sist of  money.  We  will  suppose  that  a  rail- 
road company  has  certain  bonds  that  will  be- 
come due  at  a  specified  time  in  the  future.  To 
insure  the  payment  of  these  bonds,  a  fixed  sum 
is  laid  aside  annually,  or  semi-annually.  The 
amount  thus  husbanded  can  be  used  for  no 
other  purpose  whatsoever.  It  is  called  a  sink- 
ing fund. 

(101) 


102     FINANCING,  CONSTRUCTING,  MAINTAINING. 

The  custodian  of  the  fund  is  the  trustee.  Some- 
times there  are  two  or  more  of  these  officers.* 
In  many  cases  a  trust  company  acts.  The  last 
named  practice  is  growing  more  and  more  in 
favor,  and  offers  many  advantages  over  old 
practices. 

The  value  of  a  security  is  dependent  somewhat, 
as  may  readily  be  supposed,  upon  the  character 
of  the  trustee  for  its  sinking  fund.  His  discre- 
tion is  oftentimes  large,  and  he  may  rigidly 
enforce  the  provisions  of  the  instrument  or  he 
may  evade  them.  No  penalty  usually  attaches 
to  him  for  neglect.  In  the  case,  however,  of  trust 
companies,  they  are  held  to  a  more  rigid  respon- 
sibility than  individuals  and  their  duties  are 
better  defined. 

The  holders  of  a  security  for  which  a  sinking 
fund  is  provided  may  call  upon  the  trustee  to 
ascertain  if  the  requirements  of  the  trust  are 
complied  with,  but  this  is  rarely,  if  ever,  done. 
People  who  think  about  such  things  at  all  take 
it  for  granted  that  the  trustee  is  performing  his 
duty,  and  so  let  the  matter  drop. 

Another  phase  of  the  subject  suggests  itself. 
If  a  sinking  fund  is  payable  in  cash,  as  it  is  in 
many  cases,  what  is  to  prevent  the  trustee,  if  a 
private  person,  from  appropriating  the  amount 
to  his  own  use?  He  rarely,  if  ever,  gives  a 
bond. 


*  Provision  is  usually  made  in  the  instrument  creating  a 
sinking  fund,  for  the  appointment  of  new  trustees  in  the  event 
those  specifically  named  die  or  cease  to  act. 


PARTICULARS  OF  SINKING  FUNDS.  103 

Frequently  no  provision  is  made  in  a  mortgage 
for  a  sinking  fund.  In  many  cases  the  creation 
of  a  sinking  fund  is  esteemed  imperative  by 
investors.  The  object  sought  is,  of  course,  to 
strengthen  the  security;  to  insure  the  fulfillment 
of  all  the  obligations  of  the  mortgage,  including 
the  payment  of  interest  and  principal  when  due. 
The  company  issuing  the  mortgage  binds  itself 
to  place  a  specified  sum  at  fixed  periods  in  the 
hands  of  the  trustee  of  the  fund.  Sometimes 
these  payments  are  in  cash,  sometimes  in  bonds 
of  the  issue  for  which  the  fund  is  created,  some- 
times in  other  securities.  Provision  is  also  made 
in  regard  to  investing  the  accretions  of  the  fund, 
i.  e.,  the  interest  and  premiums  that  accrue  on 
the  amount  in  the  hands  of  the  trustee. 

In  case  uncanceled  bonds  are  deposited  with 
the  trustee,  the  provisions  of  the  fund  require  that 
the  interest  on  such  bonds  shallbe  collected  and 
added  to  the  fund.  Whatever  sum  the  trustee 
may  have  on  hand  when  the  bonds  mature  he 
uses  in  payment  of  the  mortgage. 

To  prevent  improper  use  of  bonds  thus  de- 
posited, the  fact  that  they  are  held  in  trust  should 
be  plainly  stamped  upon  their  face. 

Sinking  funds  should  only  be  paid  in  cash  when 
bonds  for  which  the  fund  is  created  cannot  be 
purchased  and  used  in  lieu  thereof. 

In  some  cases  it  is  provided  that  in  the  event 
sufficient  bonds  cannot  be  purchased  at  a  specified 
price  in  the  market  to  satisfy  a  sinking  fund,  the 
trustee  may  draw  by  lot  the  number  of  bonds 


104     FINANCING,  CONSTRUCTING,  MAINTAINING. 

required,  the  holders  of  such  bonds  being  com- 
pelled to  deliver  the  same  at  a  stipulated  rate. 
This  plan  is  a  very  good  one,  but  is  objectionable 
to  the  holders  of  bonds,  as  it  makes  the  duration 
of  their  investment  uncertain.  Such  provision 
is,  therefore,  held  in  the  place  of  a  stable  security 
to  be  undesirable. 

Of  the  various  forms  of  sinking  funds,  that 
which  requires  the  keeping  alive  of  the  bonds  in 
the  hands  of  the  trustee,  and  the  collection  of 
the  interest  thereon  and  its  re-investment  by  the 
trustee,  affords  the  greatest  security. 

But  whatever  method  may  be  adopted,  it  is 
necessary  that  the  trustee  should  give  guarantees 
for  the  faithful  performance  of  his  duty.  Trust 
companies  afford  this  in  their  subscribed  capital 
and  in  the  character  of  their  officers  and  stock- 
holders. 

In  reference  to  the  treatment  of  sinking  funds 
in  the  accounts,  they  are  in  the  nature  of  unrep- 
resented capital.  A  sinking  fund  takes  the  place 
of  obligations  that  at  one  time  represented  cost. 
It  has,  therefore,  the  same  rights  as  the  original 
investment;  the  right  to  be  represented  by  bonds 
or  shares.  It  is  not  chargeable  against  income 
account  any  more  than  any  other  capital  expend- 
iture. The  reason  why  we  so  often  find  it  in- 
cluded in  the  income  account  is  because  of  the 
conservatism  of  proprietors.  It  is  another  way 
they  have  of  strengthening  their  properties.  It 
is  similar  in  effect  to  making  improvements  with 
net  earnings.  While  the  practice  appears  to 


PARTICULARS  OF  SINKING  FUNDS.  105 

trench  on  the  rights  of  stockholders,  it  is  not  to 
be  hastily  condemned.  The  fact  that  it  is  done 
by  sagacious  and  practical  business  men  is,  in 
itself,  sufficient  evidence  that  it  is  proper. 


BOOK  II. 
CONSTRUCTING  AND  MAINTAINING. 


NOTE.— This  book,  like  the  series  of  which  it  is  a  part,  treats 
of  a  subject  inseparably  interwoven  with  others  relating  to  the 
operation  of  railroads.  Only  its  more  salient  features  are  dis- 
cussed, specifically  here.  It  is  referred  to  again  and  again  in- 
cidentally (but  not  less  pertinently)  throughout  the  work  in 
connection  with  other  subjects.  As  I  have  constantly  to  re- 
iterate, the  student  who  would  understand  any  particular  phase 
of  railway  operations  must  study  the  subject  in  all  its  parts. 
He  may  not,  indeed,  thus  compass  fully  the  technical  knowledge 
of  every  department,  but  his  information  in  relation  thereto 
must  be  sufficiently  general  and  specific  to  afford  the  knowledge 
which  an  understanding  of  any  particular  department  requires. 


CHAPTER    I. 

RAILWAY    EVOLUTION. 

In  depicting  railways,  an  account  of  the  con- 
ditions which  lead  up  to  them  is  interesting,  not 
only  in  itself,  but  as  affording  a  better  under- 
standing of  the  subject.  It  is  that  which  sug- 
gested incorporating  the  volume  on  the  Evolution 
of  Transportation  as  a  part  of  this  work.  The 
origin  and  growth  of  property  go  hand  in  hand 
with  the  birth  and  development  of  man.  When 
we  describe  the  condition  of  one  we  describe  the 
condition  of  the  other.  The  two  are  coexistent. 
Thus  the  business  principles  which  we  observe 
to-day  were  in  the  main  established  by  the 
ancients,  who  were  commercially  inclined  as  we 
are,  many  hundreds  of  years  ago.  In  the  same 
way  they  originated  in  the  main  our  utensils  and 
methods.  We  have  simply  developed  their  pri- 
mary thoughts. 

In  legal  phraseology  there  are  three  kinds  of 
property— real,  personal  and  mixed.  Railway 
property  partakes  of  all  these  characteristics. 
The  privileges  it  enjoys  are  such  as  are  accorded 
it  under  the  limited-  knowledge  we  have  of  its 
uses  and  needs.  Its  rights  are  exceptional  because 
of  its  special  duties  and  responsibilities.  Its 

(109) 


HO     FINANCING,  CONSTRUCTING,  MAINTAINING. 

limitations  are  such  as  attach  to  common  car- 
riers. It  represents  a  new  departure  in  industrial 
effort;  a  progressive  step  greatly  stimulative  of 
man's  efforts.  In  other  respects  it  presents  no 
distinguishing  features.  It  furnishes,  however, 
another  instance,  if  one  were  wanting,  of  the 
sympathetic  tie  that  connects  man's  intellectual 
growth  with  that  which  he  so  greatly  prizes, 
namely,  material  wealth. 

The  primary  purpose  of  the  permanent  way 
•of  a  railroad  was  to  furnish  a  surface  that  should 
be  at  once  hard,  smooth  and  unchanging  for 
wheels  to  run  upon. 

Railways  had  their  origin  in  Great  Britain  in 
the  tramways  laid  in  the  mining  districts  for  con- 
veying coal  to  the  sea  from  the  mines  near  New- 
castle-on-Tyne  during  the  seventeenth  century. 
The  rails  were  formed  of  scantlings  of  oak, 
straight  and  parallel  to  each  other,  connected  by 
cross  timbers  also  of  oak  and  pinned  together 
with  oak  treenails;  on  these,  carts  made  with 
four  rollers  fitting  the  rails  traveled,  the  carriage 
being  so  easy  that  one  horse  is  said  to  have  been 
able  to  draw  four  or  five  chaldrons  of  coal.  The 
benefits  derived  from  this  manner  of  transport- 
ing coal  suggested*  to  the  thinking  man  the  em- 
ployment of  similar  means  for  facilitating  the 
conveyance  of  passengers  and  general  merchan- 
dise. 

A  road  graveled  between  the  rails  was  at  first 
provided  as  a  foothold  for  the  horses  which  drew 
the  cars.  The  wheels  were  kept  on  the  rails  by 


RAIL  WAY  E  VOL  UTION.  1 1 1 

guides,  attached  either  to  the  wheels  or  to  the 
rails.  As  stated,  the  earliest  railroads  were  con- 
structed wholly  of  wood. 

In  comparing  the  first  railroads  with  the  com- 
mon turnpike  road,  an  early  writer  says:  "A 
saving  is  made  of  seven-eighths  of  the  power, 
one  horse  on  a  railroad  producing  as  much  effect 
as  eight  horses  on  a  turnpike  road.  In  the  effect 
produced  by  a  given  power  the  railroad  is  about 
a  mean  between  the  turnpike  road  and  a  canal, 
when  the  rate  is  about  three  miles  an  hour;  but 
when  greater  speed  is  desirable  the  railroad  may 
equal  the  canal  in  effect  and  even  surpass  it." 

There  were,  at  first,  three  varieties  of  iron 
railroads — the  edge  rail,  the  tram  road,  and  the 
single  rail.  In  the  edge  railway  the  rails  were 
laid  with  the  edge  upward,  the  carriages  being 
kept  on  them  by  a  flange,  or  projecting  edge,  at- 
tached to  the  wheels  instead  of  to  the  rails.  The 
rails  were  at  first  about  three  feet  long,  and  four 
or  five  inches  deep  in  the  middle.  The  strength 
was  equalized  by  curving  the  outline  of  the  rail 
on  the  under  side.  The  tram  roads  had  flat  rails, 
usually  made'of  cast  iron,  having  an  elevated  edge 
or  flange  on  one  side  to  guide  the  wheels  which 
ran  upon  them.  They,  being  weaker  than  the 
edge  rails,  were  frequently  strengthened  with 
ribs  on  the  under  side.  Ordinary  wheel  carriages 
could  be  used  on  the  tram  rails,  but  unless  the 
wheels  were  smooth  they  were  injurious  to  the 
track.  One  railroad  which  used  the  single  rail 
is  thus  described:  "The  rail  is  about  three  feet 


112     FINANCING,  CONSTRUCTING,  MAINTAINING. 

above  the  surface  of  the  ground,  and  is  sup- 
ported by  pillars  placed  at  distances  of  about 
nine  feet  from  each  other.  The  carriage  con- 
sists of  two  receptacles  or  boxes,  suspended  one 
on  each  side  of  the  rail  by  an  iron  frame  and 
having  two  wheels  placed  one  before  the  other. 
The  rims  of  the  wheels  are  concave  and  n't  the 
convex  surface  of  the  rail,  and  the  center  of 
gravity  of  the  carriage,  whether  loaded  or  empty, 
is  so  far  below  the  upper  edge  of  the  rail  that 
the  receptacles  hang  in  equilibrium  and  will 
bear  a  considerable  inequality  of  load  without 
inconvenience,  owing  to  the  change  of  fulcrum 
allowed  by  the  breadth  of  the  rail,  which  is  about 
four  inches.  The  alleged  advantages  of  the  single 
rail  are,  that  it  is  more  free  from  lateral  friction 
than  the  other  kinds  of  railway,  and  that  being 
higher  from  the  ground  it  is  less  liable  to  be 
covered  with  dust  and  gravel,  and,  lastly,  that  it 
is  more  economical,  the  construction  of  one  rail 
being  less  expensive  than  of  two." 


The  introduction  of  railways  means  much  more 
in  the  wray  of  convenience  and  celerity  of  trans- 
portation to  those  countries  having  poor  high- 
ways than  to  those  more  favored  in  this  respect. 
Again,  countries  not  traversed  by  canals  and  nav- 
igable rivers,  open  the  year  through,  or  lying  far 
from  the  sea,  are  more  benefited  by  railways  than 
others.  Intercommunication  is  expensive  and 


RAIL  WA  Y  E  VOL  UTION.  1 1 3 

tedious  without  railways;  their  presence  renders 
it  expeditious  and  comparatively  cheap. 

The  railway  may  be  said  to  be  a  leveler  in  this 
respect,  that  it  places  all  countries  on  a  compara- 
tive equality.  For  heavy  classes  of  freight,  water 
carriage  is  cheaper  than  that  by  land,  but  rail- 
ways render  transportation  more  certain  and 
expeditious  than  any  other  form  of  carriage. 
Transportation  over  them  may  be  calculated  to 
a  moment.  As  regards  passenger  traffic,  rail- 
ways have  no  proper  substitute.  From  these  con- 
clusions, it  is  apparent  that  where  a  traffic  is 
sufficient  to  warrant  the  construction  of  a  rail- 
way, no  other  form  of  land  carriage  can  compete 
with  it.* 

In  constructing  a  railroad,  the  policy  of  incur- 
ring the  extra  cost  involved  in  cutting  down 
grades  to  the  minimum,  running  tunnels,  building 


*  This  may  be  illustrated  very  simply  by  the  comparative 
resistance  in  pounds  per  ton  hauled  on  highways  and  railways. 
Thus,  the  resistance  in  pounds  per  ton  on  level  highways,  con- 
structed of  different  materials,  is  stated,  approximately:  for 
stone  tramway,  twenty  pounds  per  ton;  for  paved  roads,  thirty- 
three  pounds  per  ton;  for  macadamized  roads,  forty-four  to  sixty- 
seven  pounds  per  ton ;  for  gravel,  one  hundred  and-flf  ty  pounds  per 
ton;  for  soft,  sandy  and  gravelly  ground,  two  hundred  and  ten 
pounds  per  ton.  On  the  other  hand,  the  resistance  on  a  straight 
and  level  railroad,  for  trains  of  ordinary  weight  and  description, 
such  as  are  in  general  use,  is,  for  a  train  having  a  velocity  of 
ten  miles  per  hour,  equal  to  about  eight  and  one-half  pounds 
per  ton;  for  trains  of  fifteen  miles,  about  nine  and  one-fourth 
pounds  per  ton;  for  trains  of  twenty  miles,  about  ten  and  one- 
fourth  pounds;  for  thirty  miles,  thirteen  and  one-fourth  pounds; 
for  forty  miles,  seventeen  and  one-fourth  pounds;  for  iifty  miles, 
twenty-two  and  one-hull'  pounds. 

8    Vol.  3 


1 1 4     FINANCING,  CONSTR UCTING,  MAINTAINING. 

viaducts,  and  kindred  outlays,  is  governed,  not 
by  sentiment  or  theories  regarding  what  is 
perfect,  but  by  the  saving  effected.  Will  the 
gain  exceed  the  interest  on  the  extra  outlay  and 
the  added  cost  of  operating  and  maintaining? 
And  by  gain  is  meant  the  increased  haul  possible 
and  the  saving,  if  any,  in  cost  of  working.  How- 
ever, lack  of  means,  quite  irrespective  of  these 
considerations,  oftentimes  determines  the  char- 
acter of  a  road.  This  is  so  in  all  new  countries; 
oftentimes  in  old  ones.  Steep  gradients  and  sharp 
curves  do  not  now  operate  against  the  working 
of  railways  to  the  extent  they  did  at  one  time. 
This  is  because  of  changes  in  locomotives  and 
cars.  In  Europe,  in  early  days,  a  curve  of  less 
than  a  mile  radius  was  deemed  impracticable, 
except  where  trains  moved  at  a  low  rate  of  speed. 
Now,  through  their  adoption  of  the  bogie  truck, 
so  long  ignored,  their  lines  may  be  very  sharply 
curved  without  serious  detriment  to  the  speed  of 
trains  or  the  cost  of  maintenance. 

The  character  of  railway  construction  is  gov- 
erned by  the  business  to  be  done,  as  regards  kind 
and  quantity  of  traffic.  If  wholly  or  largely 
freight,  trains  may  be  run  slowly;  if  the  passen- 
ger business  forms  an  element,  the  rate  of  speed 
must  be  such  as  to  attract  and  keep  business. 
Thus,  if  speed  is  high,  the  gradients  must,  per 
consequence,  be  moderate.  In  old  countries  the 
nature  of  a  traffic  may  be  determined  in  ad- 
vance. In  new  countries  it  can  only  be  surmised, 
consequently  it  often  falls  out  that  a  road  must 


RAIL  WA  Y  EVOL  UTlON.  \  \ 5 

be  practically  rebuilt  when  the  nature  of  its 
traffic  has  been  developed. 


Those  who  constructed  and  operated  railways 
in  America  in  early  days  were  much  embarrassed 
because  of  a  lack  of  means.  As  an  instance  of 
this,  an  old  chronicle  tells  how  men  were  "  some- 
times put  on  the  tender  with  a  saw  horse  to  saw 
and  cut  the  wood  to  make  steam  for  the  trip, 
because  there  was  no  supply  on  hand,  and  no 
money  and  no  credit  to  buy  any."  A  story  is 
also  told  of  an  official  who  surrendered  his  gold 
watch  as  security  for  a  train  seized  for  debt  while 
en  route.  In  the  beginning,  railway  companies 
experienced  great  difficulty  in  securing  reliable 
locomotive  enginemen,  and  few  of  the  machinists 
who  understood  the  business  cared  to  enter  the 
service.  Some  companies  found  experienced 
blacksmiths  the  best  source  of  supply;  others 
took  young  men  who  had  been  trained  as  farmers. 
The  engineman  in  those  days  was  expected  to 
make  the  light  repairs  that  his  engine  required, 
as  well  as  operate  the  machine.  In  case  of  derail- 
ment he  more  often  than  otherwise  had  to  set 
matters  right  without  aid  from  a  wrecking  train. 
The  employes  of  the  stage  companies  suffered 
more  than  any  other  class  from  loss  of  employ- 
ment when  railways  were  introduced.  Many  of 
them  went  into  the  service  of  the  latter.  They 
were  employed  as  conductors,  station  agents, 
baggagemasters,  firemen,  etc.  Their  previous 


116     FINANCING,  CONSTRUCTING,  MAINTAINING. 

occupation  and  training  had  made  them  robust 
and  in  a  measure  fitted  them  for  their  new  work. 
In  some  localities,  when  railways  were  first  con- 
structed it  was  thought  they  should  be  operated 
like  a  chartered  turnpike;  the  company  would 
lay  the  rails  and  the  public  drive  their  carriages 
over  them,  the  proprietors  having  the  right  to 
charge  toll  from  the  individual  owners  of  the 
vehicles.  It  was  soon  discovered,  however,  that 
a  railroad  could  not  be  operated  to  the  best 
advantage  in  this  way  and  so  the  idea  was,  little 
by  little,  abandoned.  However,  on  one  line 
known  as  the  Portage  road,  before  locomotives 
were  used,  individuals  and  firms  furnished  their 
own  drivers,  horses  and  cars.  The  cars  were 
small  and  had  four  wheels  and  a  capacity  of 
about  seven  thousand  pounds.  Four  cars  usually 
constituted  a  train.  The  drivers  were  rough, 
stubborn  fellows  whom  the  officers  of  the  road 
had  neither  power  to  discharge  nor  discipline. 
At  points  where  there  was  only  a  single  track 
between  sidings,  a  center  post  was  set  up  half 
way  between  the  two  turnouts.  When  two 
drivers  met  on  the  single  track  the  one  who  had 
passed  the  center  post  had  the  right  of  way,  while 
the  other  was  compelled  to  go  back  to  the  turn- 
out he  had  left.  Because  of  this,  it  was  the  prac- 
tices for  drivers  to  go  very  slowly  when  leaving 
a  turnout,  but  when  approaching  the  center  post 
to  drive  faster  and  faster  in  order  to  get  beyond 
it  if  possible,  and  thus  compel  any  cars  which 
they  might  meet  to  go  back.  This  resulted  in 


RAIL WA  Y  EVOL T7TION.  117 

frequent  accidents  and  occasional  loss  of  life 
caused  by  cars  being  driven  together,  as  the 
road,  in  many  cases,  was  so  crooked  that  a  driver 
could  see  but  a  short  distance  ahead.  These  and 
other  attendant  difficulties  led  to  the  abandon- 
ment of  the  practice  of  operating  roads  in  the 
manner  indicated. 

The  introduction  of  railways  in  England  was 
at  first  strongly  opposed  in  Parliament,  as  well 
as  elsewhere.  Newspapers  spoke  disparagingly 
of  them,  and  many  pamphlets  were  written  on 
the  subject.  The  evils  which  it  was  supposed 
they  would  occasion  were  vividly  portrayed.  It 
was  insisted  upon  that  the  air  would  be  so  poi- 
soned from  the  locomotive  that  birds  would  be 
killed  as  they  flew  overhead.  The  noise  and  con- 
fusion, it  was  also  maintained,  would  prevent 
cows  grazing  and  hens  from  laying;  houses  ad- 
joining the  line  of  railway  would  be  burned  by 
sparks  from  the  engine;  the  atmosphere  would 
be  clouded  with  smoke;  horses  would  become 
extinct;  oats  and  hay  would  be  rendered  unsala- 
ble; the  boilers  of  the  machines  would  burst  and 
passengers  be  blown  to  atoms;  and,  finally,  trav- 
eling by  the  public  highway  would  be  rendered 
dangerous,  and  country  inns  ruined.  A  consol- 
ing feature,  however,  was  the  belief  that  the 
weight  of  the  locomotive  would  prevent  its  mov- 
ing, and  the  railways,  therefore,  if  made,  could 
never  be  worked  by  steam  power. 

Many  quaint  experiences  attended  the  early 
operation  of  railroads.  Thus,  among  others,  the 


1 1 8     FINANCING,  CONS TR  UCTING,  MAINTAINING. 

means  of  warning  passengers  against  standing  on 
the  platforms  of  the  cars  were  more  or  less  char- 
acteristic. On  the  car  doors  of  one  railroad  was 
painted  a  representation  of  a  newly-made  grave, 
with  a  tombstone  bearing  the  inscription:  "Sacred 
to  the  memory  of  the  man  who  stood  on  the  plat- 
form when  the  train  was  in  motion."  Upon 
another  line,  the  watch  furnished  the  conductor 
was  required  to  be  suspended  by  a  chain  around 
his  neck  and  carried  in  a  fob  outside  of  his  coat. 
The  engineer  was  similarly  enjoined.  At  the  end 
of  the  trip  it  was  required  that  the  watches  should 
be  returned  to  headquarters  to  be  examined  and 
regulated.  Conductors  were  required  to  com- 
pare their  time  with  that  at  the  stations  as  they 
advanced,  and  notify  agents  of  any  errors. 

The  early  methods  of  railways  were  the  out- 
growth of  the  ingenuity  of  those  in  charge,  and 
differed  according  to  the  financial  ability  of  the 
companies  and  the  skill  of  those  in  charge.  In 
no  case,  however,  did  anyone  foresee  the  part 
which  railroads  were  destined  to  play  in  the 
affairs  of  the  world.  In  some  instances,  the  car- 
riage of  passengers  was  alone  anticipated;  in 
others,  freight.  But  in  no  case  was  it  supposed 
that  the  interchange  of  traffic  between  the  cities 
and  towns  of  a  country  was  in  the  end  to  be 
handled  wholly  by  railway  companiesi  and  that 
stage  coaches,  freight  vans,  canals  and  other 
means  of  conveyance  were  to  be  banished  ex- 
cept for  local  purposes.  Nothing  of  this  kind 
was  anticipated,  and  as  railroads  came  to  be 


RAIL  WA  Y  E  VOL  UTION.  119 

more  and  more  operated,  it  was  found  that  pro- 
vision had  not  been  made  for  many  exigencies 
that  arose. 

It  is  probable  that  the  makeshifts  of  American 
builders  and  managers  in  early  days  exceeded  all 
others.  This  because  of  lack  of  capital,  and  mis- 
apprehension as  to  the  traffic  railroads  would  be 
called  upon  to  handle.  At  first,  baggage,  express 
and  mail  matter  were  all  put  into  one  car  in 
charge  of  the  baggageman.  Before  express  com- 
panies were  organized,  the  engineer  or  conductor 
oftentimes  carried  the  money  buyers  wished  to 
send  to  their  agents  on  the  line,  and  it  was  no 
unusual  thing  to  find  the  tool  box  of  the  engineer 
filled  with  packages  of  money,  which  he  distrib- 
uted, as  called  for,  at  the  little  stopping  places 
along  the  line,  where  grain,  live  stock  or  other 
produce  was  being  bought.  All  trains  hauled 
passenger  and  freight  cars  in  common,  the  for- 
mer being  attached  to  the  rear  end  of  the  train. 
This  was  a  slow  and  uncomfortable  way  of  trav- 
eling, as  long  stops  had  to  be  made  at  stations, 
and  the  bumping  and  jolting  of  the  train  was 
uncomfortable  and  sometimes  startling  to  the 
passengers.  At  the  worst,  however,  it  was  not 
so  great  as  the  bumping  and  jolting  of  the  old- 
fashioned  stage  coach.  There  was,  therefore,  little 
fault  found.  In  early  practice  no  night  trains 
were  run,  and  trains  stopped  whenever  and  wher- 
ever people  desired  to  get  on  or  off.  Nor  were 
the  companies  averse  to  loading  freight  at  coun- 
try road  crossings.  Every  accommodation,  indeed, 


120     FINANCIXG,  CONSTRUCTING,  MAIXTAIXIXG. 

that  could  be  asked,  was  offered  patrons,  and 
no  trouble  was  thought  too  great  to  secure 
business.  Wood  was  the  fuel  commonly  used  on 
locomotives  and  for  heating  cars  in  America. 
Later  on  great  difficulty  was  found  in  burning 
coal,  though  it  proved  very  simple  in  the  end. 
At  first,  the  most  good-natured  engineers  were 
put  ..on  the  coal-burning  locomotives,  as  their 
patience  was  constantly  and  greatly  tried.  Solid 
metal  rails  were  the  ^exception  and  not  the  rule. 
The  ordinary  roadbed  was  a  strap  of  iron  bolted 
to  a  long,  square  piece  of  timber,  which,  in  its 
turn,  wras  laid  across  ties,  or,  if  not  laid  on  ties, 
was  at  least  held  uniformly  by  cross-bars.  The 
cars  wrere  lighted  with  tallow  candles. 

The  locomotive  was  not  at  first  accepted  as 
being  the  best  means  of  moving  trains.  On  the 
London  and  Blackwall  line  stationary  engines 
were  used.  A  wire  rope  thus  propelled  was 
attached  to  the  car,  a  rope  being  provided  for 
each  direction.  The  electric  telegraph  was  used 
in  connection  with  the  device  to  enable  the  engi- 
neer at  the  terminus  to  know  when  to  wind  up 
or  let  go  the  wire.  The  train  outward  bound 
consisted  of  seven  carriages.  The  two  first 
vehicles  went  through  to  the  end  of  the  line,  the 
others  were  dropped  off  at  different  stations.  On 
the  return  trip  the  carriages  were  attached  to  the 
rope  at  a  fixed  hour,  arriving  at  the  end  of  the 
line  at  intervals.  In  Ireland  atmospheric  engines 
worked  some  of  the  railways.  A  speed  of  thirty 
miles  and,  later  on,  seventy  miles  an  hour  was 


RAIL  WAY  E  VOL  UTION.  121 

thus  attained.  A  pneumatic  locomotive  was 
constructed  in  one  instance  to  be  driven  by  com- 
pressed air  stored  in  reservoirs  at  a  pressure  of 
two  thousand  pounds  to  the  square  inch.  It  was 
at  first  the. impression  among  railway  engineers 
that  the  locomotive  could  not  ascend  a  grade, 
and  that  the  roadbed  must,  therefore,  be  level. 

In  early  days  passengers  as  well  as  trainmen 
were  very  careless  while  riding  on  the  trains. 
This  occasioned  many  accidents.  People  thought- 
lessly jumped  off  the  cars  when  in  motion,  men 
fell  out  of  the  windows  while  pushing  and  jos- 
tling each  other,  and  as  riding  on  top  of  the  cars 
was  not  absolutely  prohibited,  passengers  were 
frequently  injured  by  falling  therefrom  or  by 
coming  in  contact  with  overhead  bridges.  In- 
stances were  also  frequent  where  the  cars  were 
set  on  fire  by  careless  passengers  overturning  the 
lamps  or  igniting  the  furnishings  of  the  vehicle 
while  lighting  their  pipes. 

Among  the  conceptions  of  early  railroad  experi- 
ences, it  was  suggested  that  a  feather  bed  be  sus- 
pended between  the  cars  as  a  buffer.  Another 
suggestion  was  that  the  engine  should  be  a  mile 
or  so  in  advance  of  the  train,  connected  to  it  by 
a  strong  rope,  so  as  to  avoid  danger  from  ex- 
plosion. In  those  cases  where  the  engine  could 
not  start  its  load,  horses  were  hitched  in  front 
oftentimes  to  aid  in  pulling  both  engine  and  train. 
Turntables  were  also  so  short  that  it  was  neces- 
sary to  disconnect  the  tender  from  the  locomo- 
tive. 


122     FINANCING,  CONSTRUCTING,  MAINTAINING. 

Such  were  some  of  the  incidents  of  early  rail- 
way practice.  They  are  interesting  as  illustra- 
tive of  primitive  conditions  and  instructive  as 
foreshadowing  the  advances  that  railway  men  of 
the  present  day  labor  unceasingly  to  bring  about. 
While  our  methods  seem  to  be  nearly  perfect,  it  is 
probable  they  will  be  looked  upon  fifty  years 
hence  as  merely  preparatory.  Such  will  surely 
be  the  case  if  we  strive  intelligently  to  better 
them.  * 


CHAPTER  II. 

RAILWAY    CONSTRUCTION. 

That  form  of  railway  construction  is  most  to 
be  commended  which  best  answers  the  commer- 
cial wants  of  a  community  and  restricts  cost  to 
the  narrowest  practicable  limit.  Anything  be- 
yond this  is  a  perpetual  burden. 

It  is  the  dream  of  idealists  that  particular  kinds 
of  engines  or  cars  should  be  used;  that  cars  should 
be  lighted  or  heated  in  a  particular  way;  that 
tracks  should  be  straight  or  level;  that  bridges 
and  buildings  should  be  of  stone  or  iron;  that 
ballast  should  consist  of  a  particular  kind  of 
material;  that  rails  should  be  heavy;  that  ties 
should  conform  to  a  particular  pattern;  that 
crossings  should  be  above  or  below  grade;  that 
trains  should  run  fast;  that  artistic  features  of 
construction  or  landscape  gardening  should  re- 
ceive greater  attention  and  so  on.  All  these  are 
purely  practical  questions,  however.  'Sentiment 
has  no  proper  place  in  the  economy  of  railway 
construction  or  management,  any  more  than  it 
has  in  developing  or  operating  a  farm.  They  are 
matters  of  business  merely;  of  good  judgment  and 
common  sense;  of  freedom  from  bias;  of  making 
outlay  conform  to  income. 

(123) 


124     FINANCING,  CONSTRUCTING,  MAINTAINING. 

That  the  disposition  will  grow  to  add  costly 
items  of  luxury  to  railroads  without  reference  to 
their  revenue  producing  qualities,  there  can  be 
no  doubt.  Estheticism,  sentimentalism  and  ideal- 
ism will  contribute  to  bring  about  such  a  result, 
but  let  us  put  it  off  as  long  as  possible.  It  is  not 
in  the  interest  of  the  people  nor  of  the  railroad 
companies. 

Railroads  should  be  constructed  and  operated 
solely  with  a  view  to  handling  traffic.  Ideal  ques- 
tions should  not  be  considered.  At- least  not  now. 
Questions  of  need  and  practical  utility  should 
alone  receive  attention.  In  any  event,  the  outlay 
of  railroads  should  harmonize  with  their  income, 
the  same  as  with  individuals.  An  extravagance 
not  in  accord  therewith  is  paid  for  with  multi- 
plied usury.  Luxuries  accompany  a  plethoric 
purse,  not  an  empty  one.  In  the  case  of  rail- 
roads, extravagance  in  this  direction  is  generally 
the  outgrowth  of  excessive  competition,  and  may 
not,  therefore,  be  avoided  at  will. 

The  wise  location,  economical  construction 
and  efficient  management  of  railroads  are  all- 
important. 

Railway  economy  acts  and  reacts  on  the  com- 
merce of  a  nation.  Railways,  if  managed  effi- 
ciently and  economically,  stimulate  the  commer- 
cial growth  of  a  people;  if  mismanaged,  retard  it. 

The  impossibility  of  telling  in  advance  of 
building  a  road  exactly  what  is  needed  is  appar- 
ent. It  is  especially  difficult  in  a  new  or  un- 
developed country.  The  most  glaring  contrasts 


RAILWAY  CONSTRUCTION.  125 

everywhere  present  themselves.  Thus,  India, 
with  a  population  equal  to  twenty  thousand  peo- 
ple per  mile  of  railroad,  transports  less  freight 
per  mile  than  Canada  with  a  population  not  nearly 
so  great.  This  discrepancy  is  due  to  the  fact  that 
the  latter  is  the  home  of  a  young,  virile,  growing, 
commercial  people,  while  the  former  is  not. 

The  trading  capacity  of  a  people  is  evinced  in 
the  use  it  makes  of  its  railroads.  George  Stephen- 
son,  speaking  of  England,  said  that  "the  making 
of  the  railroads  would  be  the  making  of  the  coun- 
try." The  truth  of  this  has  been  evinced  in  every 
land  where  the  industrial  thrift  of  a  people  has 
warranted  the  construction  of  a  railway  system. 

George  Stephenson,  while  he  did  not  invent 
the  first  successful  locomotive,  is,  nevertheless, 
quite  generally  accredited  with  being  the  father 
of  this  machine  and,  therefore,  of  the  railway 
system.  He  did  much  to  perfect  the  locomotive. 
As  I  have  had  occasion  to  remark  elsewhere,  his 
prominence  in  connection  with  the  opening  of 
the  Liverpool  &  Manchester  railway,  where  for 
the  first  time  the  attention  of  the  world  was 
generally  drawn  to  the  railroad  question,  concen- 
trated attention  upon  him,  so  that  it  was  believed, 
though  erroneously,  that  he  invented  the  loco- 
motive and  operated  the  first  successful  one.  The 
idea  of  the  locomotive  originated  with  Trevithick, 
as  I  have  also  pointed  out,  in  1803,  but  it  was  not 
a  financial  success.  Afterward,  John  Blenkinsop 
accomplished  what  Trevithick  had  been  unable  to 
do.  Blenkinsop  had  constructed  two  locomotives 


126     FINANCING,  CONSTRUCTING,  MAINTAINING. 

which  answered  every  requirement,  so  far  as  the 
action  of  steam  and  economy  of  operation  were 
concerned,  before  Stephenson  manufactured  his 
first  machine. 

The  locomotive  followed  naturally  the  inven- 
tion of  a  suitable  roadbed,  as  the  wagon  and  car- 
riage followed  a  suitable  highway.  The  railway 
track,  as  referred  to  elsewhere,  was  first  utilized  in 
connection  with  the  handling  of  coal.  The  bulk  of 
the  latter,  and  the  necessity  for  cheapening  its 
price,  made  some  simple  appliance  for  transporting 
it  a  matter  of  the  greatest  possible  importance  to 
the  people  of  Great  Britain.  Horses  were  at  first 
used,  then  steam.  The  cost  of  transportation  over 
these  tramways,  or  primitive  railroads,  is  said  to 
have  been  about  ten  per  cent,  of  that  over  the 
common  turnpike. 

The  evolution  of  the  rail,  with  its  support  and 
fastenings,  is  both  curious  and  instructive.  Illus- 
trations tell  the  story  better  than  words.  These 
will  be  found  elsewhere.  They  afford  a  con- 
nected study  of  the  various  forms  of  rails  that 
have  been  used,  the  different  kinds  of  stone,  wood 
and  metal  supports  that  have  been  tried,  and  the 
splices,  chairs  and  fastening  that  have  been 
invented  and  used  from  time  to  time. 

No  single  item  of  construction  equals  in  im- 
portance the  track  rail.  It  is  fundamental  and 
has  been  the  subject  of  study  and  experiment 
by  chemists,  manufacturers  and  railway  man- 
agers and  operatives  since  railroads  were  first 
opened  and,  while  the  texture  and  pattern  have 


RAILWAY  CONSTRUCTION.  127 

been  greatly  improved,  they  are  not  yet  satis- 
factory, and  it  is  unlikely  that  they  ever  will  be. 
Men  are  too  exacting,  too  progressive  for  that. 
No  particular  form  of  rail  has  been  adopted  that 
is  everywhere  recognized  as  superior  to  all 
others. 

Uniform  patterns  for  different  uses  are,  when 
practicable,  of  the  greatest  importance  in  railway 
economy.  They  cheapen  manufacture  because 
they  lessen  the  machinery  of  manufacturers  and 
render  it  unnecessary  to  keep  a  great  variety  (and 
stock)  of  material  on  hand.  Once  a  uniform  pat- 
tern has  been  agreed  upon,  the  manufacturer  can 
carry  it  in  stock  the  same  as  other  standard 
material.  It  furthermore  assists  those  in  mak- 
ing selections  who  know  little  about  such  mat- 
ters. 

Rails  differ  widely  in  form,  texture  and  weight. 
The  strain  they  are  subjected  to  is  constantly 
changing.  Each  year  the  tendency  is  to  increase 
the  load.  The  speed  of  trains  also  grows  greater. 
There  must  be  harmony  throughout.  A  rail  that 
will  answer  for  light  use  will  not,  as  is  well 
known,  do  for  great  weight  or  high  speed. 

The  adoption  of  standard  rails,  while  having 
advantages,  would  also  have  disadvantages.  Un- 
less engineers  and  others  fitted  for  the  work 
should  continue  their  experiments  and  studies 
afterward  with  fidelity  and  zeal,  there  would 
be  great  danger  that  progress  would  be  stayed. 
But  if  inquiry  and  experiment  could  continue 
unabated,  the  danger  that  always  attends  the 


128     FINANCING,  CONSTRUCTING,  MAINTAINING. 

adoption  of  standard  forms  might  be  measurably 
avoided. 

Railway  development  is  influenced  by  the 
demand  that  exists  for  its  product  and  the  treat- 
ment such  properties  receive  from  the  public. 
Unfriendliness  on  the  part  of  a  people  affects 
unfavorably  the  construction  of  new  lines.  Rail- 
ways are  the  natural  adjuncts  of  civilization,  and 
their  growth  is  assured  wherever  protection  is 
accorded  them ;  wherever  they  are  allowed  free 
scope  to  prosecute  their  business  within  necessary 
and  proper  limits.  Refusal  or  neglect  to  do  this 
will  prevent  their  construction,  except  in  those 
cases  where  prospective  gain  outweighs  possible 
risks. 

Railways,  like  other  industries,  adjust  them- 
selves naturally  to  the  countries  they  serve;  to 
the  instincts  and  habits  of  a  people.  Their  con- 
struction depends  upon  the  demand  there  is  for 
them,  the  plentifulness  of  money,  the  rate  at 
which  it  can  be  obtained  and  the  protection  ac- 
corded such  interests. 

Where  wealth  is  plentiful  and  a  people  is  accus- 
tomed to  stable,  permanent  structures,  the  phys- 
ical construction  of  railroads  usually  conforms 
thereto.  In  new  and  poor  countries,  makeshifts 
are  the  rule.  Here  the  ingenuity  and  the  genius 
of  man  is  taxed  to  the  utmost  to  lessen  cost,  to 
avoid  expense;  to  be  economical  oftentimes  where 
his  inclinations  lead  him  to  be  profuse.  The  rail- 
way development  of  the  United  States  demon- 
strates the  truth  of  this. 


RAILWAY  CONSTRUCTION.  129 

Every  invention  that  lessens  cost  is  a  gain  to 
a  community,  as  it  fosters  development  by  re- 
leasing just  so  much  capital  for  use  elsewhere. 
In  railway  construction  it  permits  the  building 
of  roads  otherwise  impossible. 

It  is  noticeable  of  railways  in  different  coun- 
tries that  the  particular  patterns  or  devices  they 
first  take  on  cling  to  them  very  tenaciously  after- 
ward. 

The  form  of  equipment  adopted  in  Great  Britain 
shaped  the  gradients,  curves,  bridges  and  tunnels 
of  its  railroads.  They  cannot  now  be  changed 
in  many  important  particulars.  In  the  United 
States,  where  money  was  scarce  and  credit  poor, 
it  was  necessary  to  adopt  something  less  costly. 
The  effect  was  to  depart  from  the  English  method 
of  construction  in  order  to  simplify  and  cheapen. 
Our  railroads  were  made  to  conform  to  resources, 
and  are  different  from  those  of  Europe  in  align- 
ment and  grades,  in  the  protection  afforded  at 
stations  and  crossings,  in  bridges,  culverts  and 
tunnels,  and,  finally,  in  the  roadbed  itself.  While 
Europe  built  its  permanent  structures  of  stone, 
America  built  of  wood.  Here  piling  took  the 
place  of  great  embankments,  and  trestles,  of 
arched  masonry.  While  cheaper  in  the  first  in- 
stance, the  cost  of  maintaining  was  greater.  How- 
ever, such  practices  nurtured  economical  habits 
and  the  exercise  of  prudent  foresight.  Expensive 
roads  were  not  built  where  cheap  ones  were  suffi- 
cient. The  roads  that  were  cheaply  built  were 
improved  out  of  the  earnings  of  the  property  or 

9    Vol.  3 


130     FINANCING,  CONSTRUCTING,  MAINTAINING. 

by  increased  capitalization,  as  circumstances  ren- 
dered desirable.  In  this  way  great  properties  in 
the  United  States  have  been  built  up.  Canada, 
Mexico  and  South  America  are,  in  many  respects, 
following  a  similar  policy. 

Particulars  of  railway  construction  cannot  be 
described.  They  are  not  precisely  alike  in  any 
two  countries.  The  devices  of  one  differ  from 
those  of  another.  Thus  the  wooden  bridge,  so 
familiar  at  one  time  to  Americans,  has  never  been 
known  in  Europe. 

The  word  "permanent,"  while  much  used  in 
railway  nomenclature,  has  no  proper  place; 
change  is  the  rule.  It  was  suggested  in  the  first 
instance  by  the  solid  wall,  coped  with  smooth 
cut  stone,  used  to  support  the  rail,  in  place  of 
the  cross-tie  that  we  use  to-day.  It  was  called 
the  permanent  way.  It  was  as  nearly  permanent 
as  anything  could  be.  But  it  lacked  elasticity, 
and  so  was  abandoned. 

Preliminary  construction  work,  coupled  with 
the  investigations  that  precede  the  building  of 
a  railroad,  is  both  interesting  and  instructive. 
An  excursion  is  first  made  over  the  proposed  line 
by  a  competent  person  or  committee,  and  the 
topography  of  the  country  noted.  Necessary 
inquiries  are  also  made  and  statistics  collected. 
The  route  having  been  determined  upon,  it  is 
methodically  surveyed.  Afterward  the  plans  and 
maps  are  passed  upon,  and  such  alterations  made 
as  circumstances  suggest.  Sometimes  repeated 
surveys  are  made.  When  the  route  is  finally 


RAILWAY  CONSTRUCTION.  131 

determined  upon,  the  right  of  way,  depot  grounds, 
and  other  like  facilities  are  obtained.  The  im- 
portance of  a  proper  location  is  supreme.  Upon 
it  depends  cost  of  construction,  the  load  that 
may  be  hauled,  the  business  that  may  be  secured, 
and  the  expense  of  maintenance  and  operation. 

After  a  line  is  agreed  upon,  the  next  thing  in 
order  is  to  prepare  specifications  of  cost  for  use 
of  engineers,  contractors  and  others.  In  many 
cases  the  owner  himself  builds  the  road,  espe- 
cially in  the  case  of  extensions  of  old  lines.  But 
in  every  instance  the  duty  of  supervising  the 
work  falls  to  the  engineer.  It  is  his  office  to 
stake  out  the  proposed  line,  make  estimates  of 
work  done  as  it  progresses  and  arrange  for  pay- 
ments. This  is  his  natural  field,  and  in  it  he  is 
supreme.  His  duties  are  at  once  laborious  and 
of  the  highest  responsibility.  They  involve  close 
application,  long  hours  of  work,  exposure,  and 
the  hardships  that  progress  through  a  country, 
oftentimes  destitute  of  comforts  and  conven- 
iences, entails.* 

The  exact  location  of  a  railway,  and  the  wise 
and  economical  expenditure  of  the  money  used 
in  its  construction,  depend  largely  upon  the  engi- 
neer. The  growth  of  his  office  in  America  has 
been  great  and  marked.  In  no  other  branch  of 
the  service  was  there  less  conception  originally 
of  just  needs.  Its  management  was  at  first  too 
often  extravagant,  ill-advised  and  self-sufficient. 

*  The  duties  and  peculiarities  of  the  civil  engineer  are  re- 
ferred to  more  fully  in  the  book  "Railway  Organization." 


132     FINANCING,  CONSTRUCTING,  MAINTAINING. 

This  condition  of  affairs  did  not  long  continue. 
From  being  an  abstractionist,  or  a  creature  of 
formulas  merely,  the  engineer  has  added  to  his 
acquirements  adaptability,  practical  knowledge, 
financial  skill,  business  training.  The  status  of 
the  engineer  in  the  early  history  of  railroads  was, 
moreover,  much  misunderstood.  He  was  sup- 
posed to  be  wise  above  his  fellows.  The  con- 
trary was  the  case.  It  followed  in  America  that 
responsibility  for  location  and,  largely,  of  method, 
was  early  taken  out  of  his  hands  by  men  who 
studied  the  means  as  well  as  the  ends  to  be 
achieved.  But  as  he  has  grown  in  worldly 
wisdom  and  commercial  sense,  work  has  been 
given  back  to  him  and  he  has  gradually  taken  his 
natural  and  proper  place.  "  In  its  earliest  devel- 
opment, engineering  was  hardly  more  than  an 
art,  a  trade  acquired  by  example  and  experience 
progressing  slowly  by  small  degrees  from  prece- 
dent. .  .  The  dominant  spirit  to-day  is  scien- 
tific; the  application  of  principles  without  much 
regard  to  precedent.  Only  conclusions  derived 
by  logical  methods  from  exact  data  and  applied 
to  conditions  which  have  been  fully  valued  in- 
spire respect.  Experience  is  also  demanded,  that 
experience  in  the  application  of  forces  and  ma- 
terials which  gives  practical  skill  and  confidence, 
but  not  in  the  nature  of  that  precedent,  which  is 
too  often  a  handicap  under  different  conditions. 
The  profession  is  losing  its  transient  character. 
Tenure  of  position  is  more  secure  and  work  on 
many  lines  is  done  throughout  wide  sections  by 


RAILWAY  CONSTRUCTION.  133 

engineers  from  a  central  office  or  headquarters. 
The  engineer  is  assuming  more  the  position  of 
counselor,  is  more  the  executive  factor  in  the  con- 
duct of  large  operations,  is  retained  more  as  an 
adviser  on  the  staff  of  industrial  enterprises.  All 
this  gives  stability,  material  rewards  and  inde- 
pendence; gives  the  engineer  a  fixed  abiding 
place  and  makes  him  a  factor  in  the  community 
in  which  he  lives;  enables  him  to  develop  the 
social  qualities  he  needs  and  leads  to  that  pre- 
eminence enjoyed  by  our  profession  in  older 
lands."* 

In  locating  railways,  the  nearer  level  they  are, 
or  can  be  made,  the  cheaper,  relatively,  it  is  to 
operate  them;  the  greater  the  load  they  can  haul 
and  the  greater  their  ability  to  stand  the  strain 
of  competition.  This  last  every  company,  to  a 
greater  or  less  extent,  sustains.  If  rightly  antic- 
ipated, it  may  be  met  with  less  embarrassment. 
Every  obstacle  that  will  impede  traffic  or  the 
continued  and  rapid  movement  of  trains  is,  so 
far  as  practicable,  to  be  avoided.  The  speed  of 
trains,  directness  of  route,  the  load  that  may  be 
hauled,  and  cost  of  maintaining  and  operating, 
are  ever  determining  factors.  These  the  engineer 
keeps  constantly  in  mind. 

Under  all  well  established  and  stable  govern- 
ments, save  ours,  no  railroad  is  allowed  to  be 
built  to  compete  with  others;  that  does  not  an- 
swer an  actual  need;  that  does  not  open  up  a  new 
field;  that  will  not  presumably  have  sufficient 

*  L.  E.  Cooley,  C.  E. 


134     FINANCING,  CONSTRUCTING,  MAINTAINING. 

income  to  pay  cost  of  maintenance,  operation 
and  fixed  charges.  The  exception  is  the  case  of 
roads  built  to  meet  military  or  political  aims.  In 
America,  however,  from  the  start  railway  con- 
struction was  free.  Whoever  could  raise  the 
means  might  build.* 

In  our  age  the  location  of  railways  determines 
the  center  of  communities,  just  as  the  highways 
of  the  past  did.  An  animated  contest  was  waged 
by  railways  with  the  water  courses  of  the  world 
from  the  start.  At  first  it  was  for  supremacy; 
afterward  for  revenue;  later,  so  far  as  rivers  and 
canals  were  concerned,  it  was  a  fight  on  the  part 
of  the  latter  for  existence. 

The  construction  and  operation  of  railways 
have  invited  speculation,  and  been  the  occasion 
of  many  financial  crises.  Such  evils,  however, 
carry  their  own  cure.  Legislation  can  do  nothing. 
The  very  uncertainty  in  regard  to  the  business  of 
a  new  railroad  invites  speculation.  Within  cer- 
tain limits  it  is  not  harmful.  Except  for  this 
speculative  spirit  no  great  enterprise,  attended 
with  uncertainty,  could  be  earned  out.  We  owe 
the  early  development  of  railroads  to  men  who 
are  willing  to  take  certain  risks  because  of  the 
prospect  of  large  gains.  "  Speculation  is  a  neces- 
sity of  modern  life.  Modern  business  involves 
large  risks.  ...  It  rests  with  individuals  to 
learn  the  lessons  of  each  crisis,  and  protect  them- 
selves as  best  they  can  from  a  recurrence  of  the 

"•This  phase  of  the  subject  is  referred  to  in  the  book  " Eco- 
nomic Theory  of  Rates." 


RAILWAY  CONSTRUCTION.  135 

same  evils.  ...  A  new  permanent  invest- 
ment is  almost  necessarily  speculative."* 

Each  year  that  a  railroad  exists  it  becomes 
more  and  more  a  permanent  geographical  feature. 
In  time  it  will  become  like  a  navigable  river  or 
inland  sea,  which  supplies  a  particular  territory 
or  affords  intercommunication  between  far  dis- 
tant places.  It  can  rarely,  if  ever,  be  considered 
distinctively  a  local  enterprise,  but  whatever 
complexion  it  may  take  on,  %the  property  inter- 
ests of  those  who  own  it  can  never  be  safely 
disregarded  by  the  government.  The  original 
interests  which  fostered  its  inception  and  growth 
must  also  be  remembered. 

The  political  importance  of  railways  cannot  be 
estimated.  In  the  easy  intercommunication  they 
afford  between  widely  separated  peoples,  all  pre- 
vious ideas  of  local  environment  or  national 
exclusiveness  vanish.  Their  effect  on  exchanges 
and  the  habits  of  mankind  is  marked  and  pro- 
gressive. Their  tendency  is  to  foster  great  enter- 
prises, to  swell  the  volume  of  business,  to  increase 
the  importance  of  trade,  to  obliterate  political 
lines  and  create  new  social  conditions.  The 
means  of  intercommunication  they  afford  and 
the  common  markets  they  create  will  tend  to 
make  the  commercial  world  a  unit. 

In  the  inception  of  railways '  expectation  ran 
high  as  to  the  probable  speed  trains  would  attain. 
These  expectations  have  not  been  fully  realized. 
On  the  other  hand  rates  are  lower  than  it  was 

*Arthur  T.  Hadley  on  " Railroad  Transportation." 


136     FINANCING,  CONSTRUCTING,  MAINTAINING. 

supposed  they  could  be.  Growth  of  traffic  has 
contributed  to  this.  Rates  depend  much  upon  the 
amount  of  business;  a  maximum  traffic  makes 
possible  a  low  rate. 

Favorable  rates  are  also  in  a  measure  depend- 
ent upon  cheap  appliances  and  good  management. 

Under  the  stimulus  of  railway  life  the  impos- 
sible has  become  possible.  Isolated  and  struggling 
villages,  otherwise  unimportant,  have  become 
great  cities,  and  primitive  continents,  in  a  decade, 
became  settled  and  civilized. 

In  the  location  of  railroads  in  Great  Britain 
and  America  their  military  value  has  been  little 
regarded.  This  featurfe  has,  however,  been  a  de- 
termining factor  in  many  cases  on  the  continent 
of  Europe.  In  all  countries  railways  will  here- 
after afford  the  lines  upon  which  the  battles  of 
the  future  will  be  fought. 

In  the  early  history  of  railroads,  especially  in 
the  United  States,  legislation  concerned  itself 
wholly  with  fostering  their  growth.  Afterward 
it  turned  its  attention  to  their  control,  to  an  at- 
tempt to  regulate  their  business,  to  prescribe 
their  methods,  to  say  what  they  should  do  and 
what  they  should  not  do.  Wherever  these  efforts 
did  not  conform  to  economic  laws  they  were 
hurtful,  both  to  the  owners  of  railroads  and  the 
people.  Mistakes  in  this  direction  are  exceed- 
ingly difficult  of  correction  and  greatly  retard  the 
material  interests  and  happiness  of  a  country. 


CHAPTER  III. 

METHODS    OF    CONSTRUCTION. 

The  term  construction  has  a  well  understood 
meaning  in  railway  parlance.  It  embraces  the 
original  or  first  cost. of  a  property,  including  all 
disbursements,  expenses,  costs,  commissions,  sal- 
aries and  debts  incurred  in  connection  therewith 
or  incident  thereto.  It  also  includes  all  interest 
that  accrues  while  the  property  is  in  course  of 
construction  and  before  it  has  been  opened  for 
business;  all  disbursements  and  losses  suffered  in 
the  sale  or  disposal  of  bonds,  shares,  securities  or 
assets,  the  proceeds  of  which  are  used  for  con- 
struction; also  all  expenditures  on  account  of 
rights,  franchises  and  appurtenances.  These  con- 
stitute the  first  cost  of  the  property — its  construc- 
tion expenditures  in  fact."*  Many  of  the  differ- 
ences noticeable  in  railway  construction  are  in- 
herent; others,  again,  are  of  method  merely.  The 
loam  ballast,  for  instance,  used  largely  upon  the 
upland  roads  of  Colorado,  will  not  do  at  all  in 

*  Construction  accounts  and  classification  are  treated  of  in 
the  book  "  Disbursements  of  Railways."  Construction  is  also 
referred  to  more  or  less  extensively  in  connection  with  "Main- 
tenance." The  two  subjects  are  so  inseparably  intertwined 
that  a  description  of  the  maintenance  of  railroads  incidentally 
involves  a  description  of  many  important  features  of  con- 
struction. 

(137) 


138     FINANCING,  CONSTRUCTING,  MAINTAINING. 

India,  where  rains  are  heavy  and  prolonged. 
Such  differences  are  inherent.  On  the  other 
hand,  the  use  of  wood  or  metal  are  largely  dif- 
ferences of  method  or  expediency,  although  it  is 
true  that  the  rapid  destruction  of  wood  in  hot, 
humid  climates  renders  the  use  of  something  less 
destructible  highly  desirable.*  The  practice  of 
one  engineer  to  lay  rails  with  broken  joints  and 
to  anathematize  all  who  do  differently  is  an  in- 
stance of  method;  method  wrongly  directed,  it 
might  be.  Again,  one  engineer  will  advocate  sup- 
ported joints  for  rails,  while  another  will  not; 
both  may  be  right.  On  one  railroad  fish  plates 
forty-six  inches  long  will  be  used ;  on  another 
eighteen  inches  is  esteemed  sufficient.  Both 
practices  may  be  right,  taking  into  account  road- 
bed, speed  and  weight  of  trains,  shape  of  rail, 
plate  and  so  on. 

Variations  in  construction  that  are  not  neces- 
sary entail  added  cost  and  should  be  avoided. 
They  usually  arise  from  lack  of  experience  and 
study.  They  are  oftentimes  the  result  of  preju- 
dice or  indisposition  to  learn.  Ignorance  is  al- 
ways arrogant,  supercilious  and  self-sufficient.  I 
remember  once  spending  three  months  writing 
rules  and  regulations  governing  a  particular 
phase  of  railway  business.  Afterward  an  officer 
of  a  neighboring  road  adopted  the  method  they 
contemplated,  but  said  he  had  not  adopted  the 

*  It  is  noticeable  in  railway  operations  that  the  wooden  tie 
each  year  costs  more  and  more.  Limitation  of  supply  occa- 
sioned by  the  destruction  of  forests  accounts  in  part  for  this. 


METHODS  OF  CONSTRUCTION.  139 

rules  and  regulations,  indeed  had  not  read  them, 
because  he  wished  to  adopt  something  original. 
This  spirit  too  often  animates  corporate  officers. 
It  is  the  result  of  arbitrary  exercise1  of  power 
without  financial  risk,  of  overweaning  egotism, 
or  jealousy  and  narrow  mindedness.  As  the  rail- 
way service  fills  up  with  men  of  education,  they 
will  esteem  their  own  wisdom  less  and  will  avail 
themselves  of  the  knowledge  of  others  more. 
That  is  where  educated  men  have  the  advan- 
tage of  the  uneducated.  It  is,  in  the  main, 
useless  to  attempt  to  teach  an  ignorant  man,  as 
he  is  superior  to  books  and  cannot  appreciate 
how  superficial  his  knowledge  is,  or  how  much 
we  may  be  benefited  by  study  and  comparison. 
He  is  all-sufficient. 

Uniformity  in  railway  construction  and  method, 
while  desirable,  cannot  be  enforced  arbitrarily. 
That  would  stifle  interest,  put  a  stop  to  inven- 
tion and  retard  advancement.  That  is  the  objec- 
tion to  standard  forms  and  methods  of  all  kinds. 
Wherever  introduced  they  must  be  attended  by 
continued  inquiries  and  experiments  and  system- 
atic provision  must  be  made  therefor.  Unless 
such  a  course  is  followed,  interest  will  die  out 
and,  with  it,  further  advancement. 

In  constructing  a  road  much  depends  upon  the 
topography  and  business  of  the  proposed  line,  and 
much  upon  the  financial  ability  of  the  company. 
Necessary  things  are  oftentimes  long  delayed  for 
lack  of  funds.  After  the  opening  of  a  line  fur- 
ther work  is  undertaken  only  after  searching 


140     FINANCING,  CONSTRUCTING,  MAINTAINING. 

inquiry.  When  passed  upon  by  local  officials,  it  is 
referred  to  the  board  of  management  for  author- 
ization, unless  the  expenditure  is  an  unimportant 
one. 

The  circumstances  attending  the  expenditure 
of  money  for  new  construction  work  are  substan- 
tially the  same  in  different  countries,  except  that 
the  scrutiny  of  the  directory  will  be  more  minute 
in  some  instances  than  in  others.  English  di- 
rectors are  noticeably  alert  in  this  respect,  and 
require  to  be  kept  advised  of  everything.  English- 
men possess  an  especial  aptitude  for  working  in 
committees.  Their  political  wisdom  and  adap- 
tability is  evinced  in  a  marked  manner  in  the 
government  of  private  corporations.  Their  prac- 
tices in  regard  to  improvements  and  additions  to 
railways  are  thus  described  by  one  skilled  in  such 
matters:*  "Recommendations  for  increased  ac- 
commodation at  stations  and  depots  undergo  a 
very  searching  examination  before  any  effect  is 
given  to  them.  We  will  suppose,  for  example, 
that  a  goods  [freight]  agent  conceives  it  to  be 
necessary  for  an  additional  siding  to  be  laid  at  a 
station.  He  makes  a  report  to  that  effect  to  the 
manager  of  the  district;  the  latter  inquires  into 
the  facts  on  the  spot,  and,  if  he  concurs  with 
the  necessity,  reports  his  recommendation  to  the 
general  manager.  The  latter  consults,  in  the  first 
instance,  the  chief  goods  manager  or  the  super- 
intendent of  the  line,  as  the  case  may  be,  and,  if 
his  report  be  favorable,  authorizes  the  engineer  to 

*  Colonel  George  Findlay. 


METHODS  OF  CONSTRUCTION.  141 

prepare  a  plan  and  estimate.  The  plan,  when 
ready,  is  subjected  to  the  criticism  of  the  district 
officer,  the  chief  officer,  and  of  the  general  man- 
ager, and  if  all  are  satisfied  the  directors  are  next 
asked  to  authorize  the  necessary  outlay.  But 
even  this  is  not  all,  for,  finally,  the  plan  has  to 
be  signed  by  the  chairman  of  the  company  be- 
fore the  engineer  commences  operations,  and  that 
gentleman,  who  keeps  a  watchful  guard  over  the 
company's  purse  strings,  has  to  be  convinced 
that  the  expenditure  is  not  only  desirable,  but 
actually  unavoidable,  before  his  signature  is  ob- 
tained." This  is  substantially  the  practice  of  rail- 
way corporations  everywhere.  Improvements  are 
not  undertaken  except  after  careful  inquiry. 

The  managers  of  American  properties  have  no 
superiors  in  the  world  in  constructing  and  oper- 
erating  railroads.  America  differs  from  Great 
Britain  in  many  ways.  The  roads  of  the  latter 
are,  however,  uniformly  well  built  and  effi- 
ciently managed.  So  far  as  faithfulness  in  the 
discharge  of  trusts  reposed  is  concerned,  it  is 
probable  the  owners  of  English  railroads  had  less 
cause  to  complain  of  their  agents  in  the  early 
history  of  these  enterprises,  than  owners  in  other 
countries  where  business  methods  were  not  so 
well  systematized,  and  fiduciary  responsibility  not 
so  well  enforced.  Cases  are  very  rare  in  England 
where  the  servants  of  railroads  laid  themselves 
open  to  the  suspicion  of  having  taken  advantage 
of  their  position  to  enrich  themselves  at  the  ex- 
pense of  their  employers. 


142     FINANCING,  CONSTRUCTING,  MAINTAINING. 

Rates  are  dependent  on  cost  to  the  extent  that, 
if  not  remunerative,  no  more  roads  are  built.  'A 
remunerative  railroad  means  multiplied  con- 
struction; an  unremunerative  railroad  means 
comparative  cessation  of  work. 

In  respect  to  low  capitalization  America  has 
the  advantage  of  Europe:  first  cost  was  less, 
while  subsequent  charges  to  construction  have 
been  more  discriminative.  The  owners  of  Euro- 
pean railroads  generally  charged  every  improve- 
ment to  construction,  capitalizing  the  amount 
from  year  to  year.  America,  on  the  other  hand, 
has  used  a  portion  of  its  surplus  to  improve  and 
strengthen  its  properties,  charging  the  amount  to 
operating.  Abroad,  the  surplus  has  been  divided 
as  dividends,  resulting  in  the  fact  that  capital  ac- 
count has  increased  until  many  railroads  are  una- 
ble to  make  an  adequate  return  thereon,  while  the 
resources  of  others  have  been  greatly  strained. 
Under  the  American  system  of  constructing  par- 
allel railroads  not  needed,  competition,  in  many 
cases,  prevented  maintenance  of  rates  or  the  pay- 
ment of  dividends,  to  the  great  injury  of  the  com- 
munity. The  monopoly  the  railroads  of  other 
countries  possessed  enabled  them  to  pay  interest 
on  cost  from  the  start.  They  may  be  able  to  con- 
tinue this;  it  is  to  be  hoped  they  will.  The  situ- 
ation is,  however,  such  as  to  excite  apprehension 
in  the  minds  of  many  familiar  with  the  subject. 
"On  a  survey  of  the  whole  matter,  there  would 
appear  to  be  too  much  reason  to  believe  that 
the  financial  position  and  prospects  of  English 


METHODS  OF  CONSTRUCTION.  143 

railways  are  going  from  bad  to  worse.  Our  rail- 
way boards  have  not  as  yet  adequately  realized 
this  great  fact,  and  have  consequently  done  little 
or  nothing  to  stem  the  tide  of  insolvency  that 
threatens  to  overtake  them."* 

In  the  building  of  railways  America  had  the 
advantage  over  Europe  in  this,  that  she  was  not 
wedded  to  any  particular  kind  of  work,  and  had 
no  theoretical  standard  to  attain.  Her  aim  was 
to  make  cost  conform  to  means  in  hand.  The 
result  is  a  comparatively  cheap  railway  system. 
In  order  to  accomplish  this,  however,  owners 
found  it  necessary  to  avail  themselves  of  cheap 
appliances,  wooden  bridges,  wooden  culverts, 
wooden  piling,  trestles,  cheap  buildings,  light 
rails,  scant  ballast,  and  so  on.  This  necessitated 
slow  trains,  but  trains  quite  on  a  par  with  their 
earnings  ability.  -  The  engineers  of  Europe  could 
not,  if  they  would,  have  constructed  such  a  rail- 
road. It  was  too  flimsy,  too  repugnant  to  ideas 
acquired  by  hundreds  of  years  of  stable  construc- 
tion work. 

Nevertheless,  the  American  system  is  the 
proper  one,  where  doubt  exists  as  to  the  pro- 
ductiveness of  a  property.  First  cost  should  be 
adapted  to  possible  income,  and  improvements 
made  afterward  as  events  justify. 

Another  means  of  lessening  outlay  was  the 
construction  of  narrow  gauge  roads.  Whether 
this  device  was,  on  the  whole,  a  ^ood  one  or  not, 
is  doubtful.  In  many  cases  it  was  not.  Where 

*  J.  S.  Jeans. 


144     FINANCING,  CONSTRUCTING,  MAINTAINING. 

there  is  a  prospect  of  through  business  requiring 
a  standard  road,  a  narrow  gauge  will,  in  many 
instances,  prove  an  expensive  device. 

Whenever  practicable,  railways  should  be  com- 
pleted before  being  opened,  and  it  goes  without 
saying  that  they  should  be  built  to  accommodate 
the  work  they  are  expected  to  do,  the  speed 
trains  are  expected  to  make,  the  loads  they  are 
expected  to  haul.  The  extra  expense  that  at- 
tends the  wear  anil  tear  of  track  and  machinery 
on  a  poorly  constructed  road  required  to  run  fast 
or  heavy  trains  is  out  of  all  proportion  to  the 
saving  in  interest  on  the  added  cost  needed  to 
put  it  in  proper  condition  in  the  first  place. 

In  new  countries  men  are  satisfied  to  get 
through  to-day  safely.  To-morrow  is  left  to  take 
care  of  itself.  It  is  necessary  oftentimes  to  dis- 
regard permanent  interests  to  save  present  outlay. 
Thus,  temporary  structures  are  built  and  rebuilt 
over  and  over  again  at  an  expense  so  near  what 
it  would  cost  to  construct  first  class  edifices  in 
the  first  place,  that  inability  to  build  durably 
at  the  start  is  paid  for  many  times  over,  with 
usurious  interest.  Such  makeshifts  are  not  nec- 
essary in  old  countries;  practices  there  tend  to 
the  other  extreme;  to  wasteful  extravagance  too 
often. 

In  constructing  a  railroad  there  is  no  fixed 
ratio  of  cost  to  gross  earnings  which  it  is  safe  to 
follow,  even  if  we  could  tell  in  advance  what  a 
road  would  earn.  It  has  been  stated  as  a  safe 
guide,  however,  by  those  who  profess  to  be  versed 


METHODS  OP  CONSTRUCTION.  145 

in  such  matters,  that  cost  should  be  limited  to 
ten  times  the  annual  earning  power  of  a  property, 
and  that  equipment  outlay  should  be  limited  to 
the  amount  of  the  annual  gross  receipts. 

The  conditions  that  attend  traffic  in  the  United 
Kingdom  are  directly  the  reverse  of  those  in  the 
United  States  hi  many  respects;  thus,  the  speed  of 
its  freight  trains  is  great,  while  the  paying  load  is 
small.  In  America  the  speed  is  moderate,  while 
the  paying  load  is  great.* 

The  cost  of  maintaining  an  English  railroad  is, 
in  some  particulars,  much  less  than  an  American 
road.  This  is  because  it  is  better  built.  The 
English  companies  pay  lower  wages  than  Amer- 
ican, but  the  number  of  employes  per  unit  of 
traffic  handled  is  greater. 

Economy  in  railway  construction  and  opera- 
tion has  been  greatly  facilitated  in  America  by 
the  use  of  what  is  called  the  bogie  truck.  This 
device  adjusts  itself  easily  and  naturally  to  the 
track,  rendering  shorter  curves  possible  and  pro- 
ducing much  less  friction  than  the  rigid  wheel 
base  formerly  in  general  use  abroad. 

The  cost  of  operating  English  railways  is  in- 
creased by  the  exclusiveness  of  passengers.  Also 
by  the  retail  business  they  carry  on;  the  small 

*  "  The  average  English  freight  car  carries  a  load  of  about 
eight  tons,  and  weighs  five  tons,  being  1.6  to  1;  the  American 
box  freight  car  carries  fifty  thousand  pounds  and  weighs  twenty- 
three  thousand  pounds,  being  2. 13  to  1." — Edward  Bates  Dorsey. 
The  tendency  in  America  is  all  in  the  direction  of  a  heavier  load; 
of  cars  that  will  hold  more  and  tracks  that  will  sustain  greater 
weight  and  speed. 

10    Vol.  3 


146     FINANCING,  CONSTRUCTING,  MAINTAINING. 

carrying  capacity  of  their  cars,  and  the  practice 
of  allowing  shippers  to  partially  load  vehicles,  is 
a  burden  that  American  companies  are  happily 
exempt  from. 

The  wide  differences  that  exist  in  cost  of  oper- 
ating railways  in  different  countries  will,  in  many 
respects,  grow  less  and  less  marked  as  they  are 
able  to  adopt  the  best  appliances  of  each  other. 
But  no  two  systems  will  ever  be  exactly  alike. 
Differences  in  construction  and  environment  will 
prevent  this.  But  so  far  as  inherent  differences 
will  permit,  the  good  points  of  each  system  will 
be  finally  adopted  by  all.  Business  men  are  not 
tenacious  of  their  methods  when  the  effect  is  to 
deprive  them  of  income.  The  difficulty  in  the 
way  will  not,  however,  be  with  the  business  man, 
the  owner,  but  with  his  agents.  The  latter  will 
be  more  or  less  stubborn,  more  or  less  firm  in  the 
belief  that^their  systems  are  the  best,  more  or 
less  intent  upon  devising  something  Original. 

It  is  a  necessity  that  rates  should  be  low  in 
America  in  order  to  move  traffic  over  the  vast 
distances  to  be  traversed.  This  has  been  realized 
from  the  start  and  has  resulted  in  lessening  cost 
of  operating  and  in  adding  in  every  way  to  the 
carrying  (earning)  capacity  of  railroads.  The  re- 
sult is  that  cost  of  operating  in  America,  taking 
everything  into  consideration,  is  very  low.  Car- 
riers have  met  falling  rates  by  increased  loads 
and  better  appliances.  The  limit  of  low  rates, 
however,  is  determinable.  Beyond  that  point 
further  reductions  involve  the  bankruptcy  of 


METHODS  OF  CONSTRUCTION.  147 

railroad  companies  and  the  demoralization  of 
the  business  of  a  country  generally. 

While  competition  increases  expenses  in  some 
directions  and  lessens  earnings  in  particular  in- 
stances, it  is  not  without  advantages.  To  its 
stimulating  effect  we  owe  all  the  substantial  ad- 
vances that  have  been  made  since  railways  were 
first  opened.  Had  there  been  no  competition, 
had  not  men  been  incited  to  invent  and  adopt 
better  appliances  to  secure  the  favor  of  the  public 
and  lessen  cost,  there  can  be  no  doubt  but  that 
we  should  be  using  substantially  the  same  appli- 
ances that  were  adopted  in  the  first  instance. 
Men  progress,  not  because  they  love  to  progress, 
but  because  of  strife  and  friction;  because  of 
rivalry;  of  a  desire  to  secure  advantages,  to  dis- 
tance neighbors;  to  acquire  and  retain  property. 

Comparison  of  the  equipment  of  England  with 
that  of  America  is  interesting:  "  Stephenson  and 
his  colleagues  mounted  the  old  stage  coach  body 
on  car  wheels,  which  became  the  type  of  passenger 
cars;  the  coal  wagons  that  were  then  in  use  in  the 
collieries  were  put  on  the  railroad,  and  became  the 
type  of  freight  cars;  and  before  the  conservative 
English  character  thought  that  they  ought  to  be 
improved,  and  should  be  changed,  the  trunk  lines 
had  been  built,  adapted  to  this  narrow  and  low 
type  of  rolling  stock.  To  have  made  it  wider  and 
higher  later  would  have  required  the  removing 
and  reconstruction  of  the  masonry  platforms,  the 
raising  and  widening  of  bridges  and  tunnels — in 
fact,  almost  a  reconstruction  of  the  road.  This 


148     FINANCING,  CONSTRUCTING,  MAINTAINING. 

will  prevent  the  use  of  high  and  wide  cars.  It  is 
not  fair  to  blame  the  modern  English  engineer 
for  continuing  the  use  of  this  description  of  cars, 
which  he  cannot  change  at  any  justifiable  ex- 
pense. .  .  The  English  railroads  have  cost  per 
mile  more  than  three  times  as  much  as  the  Amer- 
ican. .  .  One  of  the  principal  items  of  the 
greater  cost  is  the  necessity  of  having  much 
straighter  alignment  or  easier  curves,  so  that  it 
can  be  safely  operated  by  the  rigid  and  long 
wheel  base  rolling  stock  in  use  there.*  The  Bal- 
timore &  Ohio  Railroad  is  a  sample  of  what  can 
be  done  with  the  American  rolling  stock.  This 
road  is  built  through  a  very  difficult  and  rugged 
country,  which  compelled  a  very  poor  alignment, 
with  nearly  one-half  of  the  entire  length  in  cur- 
vature, which  curves  run  up  to  six  hundred  feet 
radii,  and  long  grades  running  up  to  one  hundred 
and  twenty  feet  per  mile.  The  country  affords 
no  natural  advantages  whatever.  Yet,  with  all 
these  drawbacks,  this  road  does  a  very  large  and 
profitable  business  and  operates  its  passenger 
trains  safely  at  very  high  speed.  All  this  is 
done  on  a  road  that  could  not  be  operated  with 
rolling  stock  built  on  the  English  system.  The 

*  It  has  been  estimated  that  the  long,  rigid  Avheel  base  of 
the  English  equipment  makes  the  cost  of  maintenance  of  way, 
locomotive  power  and  repairs  and  renewals  of  cars  double 
what  it  is  on  American  roads  for  like  service.  There  is,  how- 
ever, a  marked  tendency  to  adopt  more  facile  methods  in  Great 
Britain.  The  railway  managers  of  that  country  are  not  less 
alert  than  those  of  other  lands  to  improve  their  methods,  so 
that  the  conditions  referred  to  are  likely  to  be  overcome  ill  the 
near  future.  M.  M.  K. 


METHODS  OF  CONSTRUCTION.  149 

extra  cost  of  enlarging  these  curves  to  adapt  them 
to  English  rolling  stock  would  be  so  great  as  to 
be  commercially  impracticable.  It  is  not  difficult 
to  appreciate  the  great  difference  in  cost  of  con- 
struction, in  an  extremely  rough  country,  of  a 
railroad  with  curves  six  hundred  feet,  or  twenty- 
six  hundred  and  forty  feet  radii.  Unquestion- 
ably the  American  system  of  construction  is  the 
best  for  new  countries,  or  where  cheapness  of 
construction  is  desirable.  The  American  rolling 
stock,  with  the  bogie  truck,  will  run  safely  and 
rapidly  over  roads  of  inferior  construction,  or 
sharp  curves  that  would  be  impossible  for  rolling 
stock  constructed  on  the  English  type  of  long  and 
rigid  wheel  base.  The  American  type  is  espe- 
cially adapted  for  military  purposes 

Through  an  ordinary  rough  country,  a  railroad 
to  be  operated  with  the  American  type  of  rolling 
stock  could  be  constructed  in  one-fourth  of  the 
time  and  for  one-fourth  of  the  money  that  one 
suitable  for  the  English  rolling  stock  could  be 
built."* 

America,  in  the  construction  of  her  railways, 
was  happily  free  from  many  prejudices  and  hab- 
its that  operated  to  the  disadvantage  of  older 
countries.  Its  railways  were  made  to  conform 
to  practical  needs.  If  a  road  was  not  expected 
to  do  a  large  business,  its  cost  was  made  to  con-! 
form  thereto.  If  it  was  not  expected  to  require 
more  than  one  train  a  day,  it  was  built  to  accom- 
modate  one  train.  This  adjustment  of  outlay  to 

*  Edward  Bates  Dorsey. 


150     FINANCING,  CONSTRUCTING,  MAINTAINING. 

income,  however,  has  been  seriously  threatened 
in  some  instances.  Thus,  local  authorities  have 
'assumed,  though  not  generally,  to  fix  arbitrarily 
the  number  of  trains  that  shall  be  run;  to  make 
a  political  tribunal,  in  fact,  the  judge  of  the  com- 
mercial situation;  actual  needs,  paying  loads, 
profits,  precedent,  all  counted  for  nothing.  Cap- 
italists might  not,  if  this  spirit  prevailed,  hope  to 
build  railroads  based  on  traffic,  but  rather  on  the 
peculiarities,  passions  and  ambitions  of  politicians 
and  parties.  However,  they  need  not  make  in- 
vestments under  such  circumstances,  and  that 
the  action  I  have  referred  to  tended  to  keep 
them  from  making  investments  in  the  localities 
mentioned  there  can  be  no  doubt.  But  where  this 
spirit  does  not  prevail,  capital  will  seek  invest- 
ment in  railways  So  far  as  traffic  needs  warrant 
and  money  can  be  profitably  placed.  Supply  and 
demand  will  go  hand  in  hand. 

The  intensely  practical  spirit  of  railway  man- 
agement in  America  is  generally  remarked  by 
foreigners.  Expenditures  are  made  to  conform 
to  income.  There  is  no  straining  after  theoretical 
objects  in  any  direction;  estheticism  is  allowed 
to  lie  on  the  shelf;  trains  are  run  to  accommo- 
date traffic  and  conform  to  its  profitableness.  In 
older  countries  railway  operation  has  had  to  con- 
form more  or  less  to  firmly  fixed  habits  and  pre- 
conceived ideas  of  what  was  needed.  Thus,  in 
constructing  railways  very  little  distinction  has 
been  made  between  productive  and  nonproduct- 
ive property.  Everything,  must  be  stable  and  of 


METHODS  OF  CONSTRUCTION.  151 

the  first  class.  W.  H.  Booth,  referring  to  this 
aspect  of  the  case,  says  that  unless  it  be  in 
lighter  rails,  there  is,  in  England,  practically  no 
difference  observable  in  nature  of  construction 
between  a  short  branch  line,  on  which  a  small 
train  runs  to  and  fro  three  or  four  times  daily, 
and  the  main  line  carrying  numerous  fast  ex- 
presses. There  are  the  same  substantial  bridges 
over  and  under  mere  country  cart  tracks,  and  the 
usual  culverts,  fences  and  station  buildings.  Ex- 
pensive brick  freight  sheds  are  found  at  many 
stations  where  the  traffic  is  almost  nil.  These 
cannot  possibly  be  paid  for  by  the  volume  of 
traffic  they  serve  and  must  go  very  far  to  eat  up 
the  returns  from  the  larger  towns.  Extravagances 
like  these  are  the  penalties  men  pay  in  business 
affairs  for  permitting  prejudices  or  preconceived 
notions  to  govern  practical  needs. 


CHAPTER    IV. 

PARTICULARS   OF    CONSTRUCTION,    COST,    DETAILS 
THEREOF,  ETC. 

The  cost  of  constructing  railways  has  been 
lessened  by  the  cheapening  of  appliances  and  the 
introduction  of  better  methods  and  implements. 
To  enumerate  these  would  involve  a  history  of 
railway  evolution,  because  every  article  has  been 
changed,  bettered  and  cheapened.  The  result  of 
changes  has  been  to  lessen  cost,  save  work,  ex- 
pedite business  and  to  render  it  generally  more 
satisfactory. 

Every  device  that  the  ingenuity  of  man  could 
suggest  has  been  brought  into  requisition  to 
lessen  cost  of  constructing  and  operating.  Man- 
kind have  ever  been  in  accord  in  devising  ways 
to  reduce  the  number  of  men  engaged  in  building 
railroads,  and  in  substituting  therefor  mechanical 
devices.  But  such  has  not  been  the  case  every- 
where. Men  may  be  cheaper  than  machines  or 
horses.  This  is  the  case  in  India  in  many  local- 
ities. There,  myriads  of  men,  women  and  chil- 
dren take  the  place  of  steam  dredges,  shovels  and 
other  devices  for  preparing  the  roadbed.  The 
work  is  carried  on  by  hand,  a  common  hoe  and 
wicker  basket  being  used.  The  natives  work  in 
families,  the  head  of  the  family  digging  the  earth 

(152) 


PARTICULARS  OF  CONSTRUCTION.  153 

and  filling  the  basket,  while  the  wife  and  children 
carry  it  away.  Two  or  three  thousand  people 
may  thus  be  engaged  on  a  mile  of  track.  Labor 
is  plentiful  and  cheap  and  progress  rapid,  un- 
less food  fails  or  an  epidemic  breaks  out.  The 
latter  not  infrequently  happens  on  account  of  the 
lax  habits  of  the  natives.  The  embankments  of 
the  Indian  railways  are  allowed  to  settle  during 
the  rainy  season  before  use;  they  sink  one  to 
two  inches  per  foot,  according  to  the  quality  of 
soil.  Wooden  bridges  and  cast-iron  girders  are 
never  used.  The  bridges  are  built  with  stone  or 
brick  abutments  and  wrought-iron  girders.  The 
waterway  allowed  is  very  large,  because  heavy 
rainfalls  and  floods  are  frequent  at  certain  sea- 
sons, when  little  streams  become  wide  rivers 
in  a  few  hours.  Stone  ballast  is  generally  used. 
Sandstone,  slate  and  other  soft  ballast  becomes 
useless  within  a  few  years,  but  burnt  clay  has 
been  used  successfully.  Steel  rails  are  generally 
laid,  the  best  roads  using  thirty-feet  rails  of  the 
double-headed  type;  the  weight  varies  from  sev- 
enty-two to  eighty-two  pounds  a  yard.  Steel  or 
iron  ties  are  very  generally  used,  as  wood  is 
scarce  and  high  priced.  No  oak  is  used  for  this 
purpose;  the  best  wood  is  a  native  timber  called 
sal,  but  it  is  scarce.  Creosoted  fir  from  Norway 
has  been  successfully  used,  but  as  the  price  con- 
tinually advances  recourse  is  being  had  more  and 
more  to  metal  ties.  Especial  care  has  to  be  taken 
to  provide  for  the  expansion  and  contraction  of 
the  rails  in  track,  owing  to  extreme  changes 


154     FINANCING,  CONSTRUCTIXC1,  ^^^IXTMXfX<;. 

of  temperature,  and  devices  for  rail  joints  are 
adapted  to  this  end.  Suspended  joints  opposite 
each  other  are  the  rule. 

The  money  to  build  railroads  seldom  comes 
from  the  localities  where  the  properties  are  situ- 
ated. Local  interests,  however,  gather  the  rich 
fruits  that  follow  the  construction  of  a  railroad. 
They  feel  the  stimulus  of  increased  population, 
of  new  industries,  of  general  appreciation  of 
values,  including  land.  They  are  the  principal 
beneficiaries.  And  this  without  any  risk  or  the 
expenditure  of  a  cent.* 

As  the  capital  of  railroads  is  raised  outside  of 
the  immediate  community  where  they  are  lo- 
cated, it  follows  that  it  adds  so  much  to  the  wealth 
of  the  community  in  which  it  is  disbursed.  This 
accession  of  wealth,  with  the  new  enterprises  that 
follow  in  its  train,  including  increase  of  popula- 
tion and  general  enhancement  of  values,  the  com- 
munity receives  in  consideration  of  certain  rights, 
of  no  particular  value  to  it,  which  it  gives  or  sells 

*  In  reference  to  the  enhancement  of  values  consequent  upon 
the  introduction  of  railways  in  Great  Britain,  Sir  Rowland  Hill 
says  (Royal  Com.  p.  cviii.) :  "  The  possessors  of  land  and  other 
fixed  property  in  all  districts  traversed  by  railways  have  been 
enriched  by  the  increased  value  of  their  possessions,  to  the 
extent,  probably,  in  many  instances  of  four  fold."  While  the 
increase  in  the  British  Isles  may  not  have  exceeded  Sir  Row- 
land's estimates,  it  falls  much  below  the  appreciation  realized 
by  property  owners  in  America;  this  difference,  it  is  hardly 
necessary,  perhaps,  to  state,  is  occasioned  by  the  greater  extent 
of  country,  its  comparative  newness,  and  the  meager  facilities 
it  enjoyed  for  intercommunication  previous  to  the  introduction 
of  railways. 


PARTICULARS  OF  CONSTRUCTION.  155 

in  exchange.  The  most  important  of  these  is 
the  right  of  eminent  domain.  This  right  is  made 
much  of  by  railway  critics  and  superficial  writers 
on  railway  subjects.  It  is  not  a  gift.  Those  who 
exercise  it  pay  for  everything  they  get.  Nor  is 
it  an  exclusive  privilege,  where  railway  construc- 
tion is  free.  Moreover,  its  exercise  by  railroads 
is  much  more  valuable  to  the  community  than 
to  those  upon  whom  it  is  conferred.  It  is  like 
widening  or  deepening  the  channel  of  a  river  be- 
fore unnavigable,  or  opening  a  passage  through 
a  mountain  previously  impassable.  Its  exercise 
creates  new  sources  of  supply,  new  markets,  new 
lines  of  travel,  new  means  of  intercourse,  new 
sources  of  wealth.  Those  who  provide  the  capi- 
tal for  constructing  the  railroad  by  which  these 
results  are  brought  about  derive  no  other  benefit, 
as  a  rule,  than  a  reasonable  (oftentimes  meager) 
return  on  their  investment.  Their  gain  is  slight 
indeed  compared  to  that  the  community  at  large 
receives. 

While  the  first  cost  of  a  road  is  in  the  nature 
of  new  capital  brought  into  a  community,  the  ex- 
pense of  operating,  taxes,  improvements  and  addi- 
tions also  adds  annually  a  large  sum.  Practically 
nothing  is  taken  away.  What  is  not  disbursed 
for  expenses  is  reinvested.  Thus  a  community 
is  benefited  in  every  way. 

These  simple  and  suggestive  facts  occur  forci- 
bly to  those  who  study  the  railway  subject  in 
the  light  of  condemnation  which  so  often  assails 
these  properties.  However  apparent  they  may 


156     FINANCING,  CONSTRUCTING,  MAINTAINING. 

be  to  students,  they  do  not  receive  from  a  large 
class  of  the  community  the  consideration  they 
merit. 

In  considering  the  disbursements  of  railroads, 
those  relating  to  the  cost  of  the  property  are 
naturally  the  first  to  receive  attention.  The  ex- 
penditures on  this  account  embrace  several  dis- 
tinct objects,  all  subservient,  however,  to  the 
main  purpose.  Let  us  consider  them  in  their 
order;  and  first  we  may  note  the  cost  of  the  char- 
ter or  permit  to  build,  the  outlay  for  legal  advice, 
notarial  expenses,  the  company's  seal  and  other 
items  of  a  like  character.  These  disbursements 
vary  greatly  with  different  companies.  In  some 
of  the  states  of  the  Union  it  is  required  that  a 
company  shall  procure  a  charter  from  the  legis- 
lature. This  charter  is  the  substance  or  embodi- 
ment of  a  law  specifying  the  duties  and  preroga- 
tives of  the  company  and  the  territory  it  may 
occupy.  This  is  the  manner  of  procedure  followed 
in  the  United  Kingdom.  There  the  authoriza- 
tion of  Parliament  must  be  secured  in  every  case. 
It  is,  as  a  rule,  both  expensive  and  tedious.  In 
some  of  the  states  of  the  Union  railways  are  built 
under  a  general  statute.  There  is  no  limit  to  the 
number  that  may  be  organized  in  such  cases.  It 
only  requires  a  permit  involving  the  expenditure 
of  a  few  dollars.  The  cost  is  much  greater  for  a 
charter  than  a  permit.  Where  a  special  charter 
is  required,  the  expense  varies  in  proportion  to 
the  necessity  for  the  proposed  road,  the  fidelity 
and  skill  with  which  the  matter  is  pressed  upon 


PARTICULARS  OF  CONSTRUCTION.  157 

the  legislature,  and  finally  the  industry,  intelli- 
gence and  good  intention  of  the  latter  body.  A 
law  must  be  drafted  in  any  event,  and  men  skilled 
in  the  arts  of  legislative  practice  employed  to 
press  it.  It  requires  time  and  more  or  less  outlay. 

When  railroads  are  organized  under  a  general 
law,  the  process  is  comparatively  simple.  The 
incorporates  must  perfect  arrangements  in  con- 
formity therewith  and  file  the  papers  required. 
In  return  it  receives  a  permit  to  build.  A  certain 
percentage  of  the  capital  stock  is  usually  required 
to  be  paid  up  before  a  railroad  company  can  go 
ahead  to  construct. 

After  the  procurement  of  a  charter  or  permit, 
the  amount  necessary  to  be  disbursed  to  perfect 
the  organization  is  very  small.  However,  it 
forms  a  part  of  the  cost  of  the  property  and  is 
placed  to  its  debit  with  other  items  of  greater 
consequence. 

Preparatory  to  the  location  of  a  line,  one  or 
more  preliminary  surveys  are  made,  as  I  have 
pointed  out  elsewhere.  It  is  sometimes  neces- 
sary to  explore  several  routes  before  it  is  possi- 
ble to  decide  intelligently  which  has  the  greater 
advantages  or,  perhaps,  which  is  the  least  objec- 
tionable. This  labor  requires  time  and  skill  and 
frequently  involves  the  expenditure  of  a  large 
sum  of  money.  Under  the  most  favorable  cir- 
cumstances the  work  of  locating  a  property,  if 
conducted  intelligently  and  with  a  view  to  ulti- 
mate outlay  and  income,  requires  the  exercise  of 
patience  and  good  judgment.  Not  only  must  the 


158     FINANCING,  CONSTRUCTING,  MAINTAINING. 

engineer  prepare  a  general  description,  or  profile, 
of  the  different  routes,  but  must  determine  the 
approximate  cost  of  the  various  structures,  em- 
bankments, cuts,  tunnels,  bridges  and  culverts; 
the  amount  and  quality  of  the  earth  that  must  be 
moved,  and  the  distance  it  must  be  moved;  the 
cost  of  track  and  other  supplies,  including  bal- 
last; and,  finally,  the  maximum  load  that  may 
be  hauled  in  either  direction  over  the  whole  line 
and  over  its  different  sections.  In  connection 
with  the  cost  of  each  route  surveyed,  traffic  ad- 
vantages have  also  to  be  carefully  studied. 

Expenditures  for  surveys  involve  disbursements 
for  implements,  wages  of  men,  clerical  and  super- 
visory force  at  headquarters,  and  the  incidental 
expenses  of  the  men  in  the  field.  The  outlay  be- 
longs to  the  engineering  department. 

While  the  surveying  parties  are  still  engaged, 
or  preliminary  thereto,  the  capital  outlay  inci- 
dent to  the  construction  of  the  proposed  road 
must  be  considered  by  its  projectors.  There  are 
two  ways  of  raising  money,  namely,  by  the  sale 
of  mortgage  bonds  and  capital  stock.*  Both  are 
usually  employed  in  America,  but  not  in  equal 
degrees.  Expenditures  incident  to  the  prepara- 
tion of  mortgage  bonds  and  shares  capital  and 
the  placing  of  the  same  on  the  market,  vary 
greatly.  Among  them  may  be  embraced  print- 
ing, engraving,  registering,  commissions,  ex- 
change, and  expenses  connected  with  the  sale 

*  These  methods  are  frequently  supplemented  by  a  large 
floating  debt  before  the  road  is  opened. 


PARTICULARS  OF  CONSTRUCTION.  159 

and  delivery  of  the  securities.  The  discount  suf- 
fered in  the  sale  of  securities  forms,  in  many 
cases,  a  very  large  item  in  the  construction  ac- 
count. It  is  chargeable  to  cost  of  property. 

Ability  to  dispose  of  the  securities  of  a  corpo- 
ration upon  favorable  terms  depends  upon  the 
probable  value  of  the  proposed  road,  familiarity 
with  the  subject  by  capitalists,  the  condition  of 
the  money  market,  and  the  character  of  the  men 
in  charge.  Political  considerations  also  enter  into 
the  subject.  A  community  known  to  be  dishonest 
in  paying  its  debts,  or  in  not  paying  them,  cannot 
borrow  as  cheaply  as  honest  people. 

An  important  item,  chargeable  to  construction, 
is  interest  on  capital  while  the  road  is  being 
built.  It  varies  greatly,  but  is  considerable  in 
every  instance. 

Up  to  this  point,  it  is  apparent,  nothing  of  a 
tangible  value  has  been  secured,  although  the 
disbursements  have  been  large  and  continuous. 
We  now  come  to  the  outlay  for  real  estate,  for 
roadway,  station  houses,  supply  depots,  shops, 
yards,  sidings,  docks  and  offices.  In  the  procure- 
ment of  its  realty  a  company  requires  agents 
possessing  especial  aptitude  and  men  withal  of 
approved  integrity  and  discretion,  as  the  success- 
ful and  honorable  fulfillment  of  their  duties  re- 
quires patience,  tact,  skill  and  fidelity. 

Except  in  isolated  cases  it  is  the  experience  of 
every  company  that  the  price  put  upon  the  land 
wThich  it  buys  or  condemns  is  excessive.  The 
price  is  based  upon  neighborly  accommodation, 


160     FINANCING,  CONSTRUCTING,  MAINTAINING. 

interest  and  thrift;  rarely,  if  ever,  upon  bona  fide 
sales  to  private  parties.* 

Railways  never  strive  to  acquire  land  at  less 
than  its  value.  All  their  efforts  are  directed  to 
escaping  the  payment  of  grossly  fictitious  sums. 
The  expense  of  procuring  the  realty  a  company 
requires,  aside  from  the  cost  of  the  realty  itself, 
varies  greatly.  In  new  or  sparsely  settled  dis- 
tricts the  number  of  transactions  is  comparatively 
small,  and  the  general  desire  of  the  community 
to  have  the  roads  constructed  renders  the  hold- 
ers of  land  tractable.  Where  the  population  is 
dense,  the  outlay  to  which  a  company  is  put 
for  land  and  the  expenses  of  juries,  commissions, 

*  This  is  the  case  in  every  country  where  railways  are  built 
except  where  the  appraisement  is  made  by  disinterested  and 
capable  officers  of  the  government.  The  disposition  to  exag- 
gerate the  value  of  property  required  by  railway  companies  has 
been  the  subject  of  frequent  complaint  in  Great  Britain.  Sir 
Kowland  Hill,  in  a  report  made  by  him,  says:  "  In  the  purchase 
of  land  for  railway  purposes  the  amount  actually  paid  is,  as 
already  stated,  often  several  times  the  antecedent  value."  Mr. 
A.  Sinclair,  C.  E.,  in  his  interesting  notes  on  British  railways 
says,  in  reference  to  the  excessive  demands  made  upon  the  Eng- 
lish companies  for  the  land  they  require  and  for  land  damages: 
"In  the  cost  of  British  railways,  right  of  way  has  proved  an 
expensive  item.  As  the  land  is  mostly  divided  up  into  large 
estates,  a  company  negotiating  for  right  of  way  has  not  a  mul- 
titude of  property  holders  to  contend  with.  But  if-  the  land 
owners  are  few,  they  are  perfect  Trojans  to  fight  for  compensa- 
tion. There  is  a  curious  laxity  of  principle  among  a  great 
many  people  in  their  dealings  with  railway  corporations. 
Noblemen  who  are  popularly  credited  with  the  possession  of 
sentiments  as  elevated  as  their  titles,  clergymen  with  reputa- 
tion spotless  as  their  neckties,  have  been  known  to  swear  that  a 
railway  going  throxigh  their  grounds  would  inflict  an  amount  of 
damage  exceeding  the  market  value  of  their  whole  estates." 


PARTICULARS  OF  CONSTRUCTION.  161 

arbitrators,  experts,  witnesses,  and  other  court 
costs,  is  a  severe  tax  on  the  wealthiest  corpora- 
tion. 

To  avoid  imposition  as  far  as  possible,  railway 
companies  do  not,  when  they  can  avoid  it,  defi- 
nitely locate  their  lines  until  the  realty  they 
require  has  been  contracted  for.  Those  who 
procure  the  right  of  way  must  be  allowed  wide 
discretion  to  enable  them  to  secure  the  most 
advantageous  terms  possible.  It  will  be  the 
policy  of  these  agents,  as  it  is  of  the  company 
employing  them,  to  represent  that  the  location 
of  the  line  is  dependent  (as  it  should  be)  upon  the 
facilities  afforded,  and  the  amount  the  company 
is  required  to  pay  for  right  of  way,  depot  grounds 
and  yards;  also  upon  the  general  friendliness  and 
fairness  of  the  people.  Under  a  method  so  dis- 
creet, property  owners  will  perceive  that  the 
benefits  they  hope  to  derive  from  the  contem- 
plated enterprise  will  not  be  realized  if  they  are 
unreasonable  in  their  demands.  Public  sym- 
pathy and  interest  will  also  be  excited,  and  thus 
the  more  rapacious  of  the  community  will  be 
held  in  check.  Disbursements  for  notaries,  reg- 
isters, attorneys,  clerks,  abstracts,  deeds,  and 
kindred  items  connected  with  the  procurement 
of  land,  swell  the  cost  of  a  company's  property. 
Aside  from  these  are  the  salaries  and  expenses  of 
the  agents  engaged.  This  outlay  may  be  deter- 
mined approximately  in  advance,  but  it  will 
vary  with  different  localities,  periods  and  cir- 
cumstances. 

11    Vol.    3 


162     FINANCING,  CONSTRUCTING,  MAINTAINING. 

Matters  relating  to  the  lands  of  a  company 
are  rarely,  if  ever,  fully  closed  at  the  time  of  the 
opening  of  its  line.  Years  sometimes  elapse 
before  court  proceedings  and  private  negotia- 
tions are  brought  to  a  close,  and  requisite  deeds 
passed.  Whenever  a  company  finds  it  impossible 
to  come  to  an  amicable  arrangement  with  the 
owners  of  property,  proceedings  of  condemnation 
are  instituted  and  the  work  of  building  pushed 
on,  leaving  the  matter  of  compensation  to  be 
determined  afterward  by  the  courts  or  boards  of 
arbitration. 

Disbursements  for  construction  increase  in  vol- 
ume as  work  progresses.  At  first  small  and  infre- 
quent, they  grow  in  number  and  magnitude  with 
the  lapse  of  time,  just  as  a  storm  oftentimes  pro- 
gresses from  a  few  preparatory  drops  to  a  blind- 
ing tempest.  With  the  active  inauguration  of 
the  work  of  construction,  those  who  provide 
the  capital  must  meet  the  cost  of  grading  and 
ditching;  perfecting  the  roadbed;  building  bridges; 
constructing  culverts;  boring  tunnels;  excavat- 
ing cuts;  raising  embankments;  clearing  away 
obstructing  objects;  constructing  dikes;  laying 
ties  'and  rails,  and,  finally,  ballasting  and  sur- 
facing. Concurrent  with  these  expenditures,  or 
following  them,  the  work  of  constructing  fences, 
telegraph  lines,  depots,  warehouses,  platforms, 
sidings,  engine  houses,  workshops  and  machinery 
and  supply  depots  progresses  with  more  or  less 
activity.  Finally,  the  vast  panorama  is  closed 
for  the  time  being  by  the  purchase  of  necessary 


PARTICULARS  OF  CONSTRUCTION.  163 

furniture  and  fixtures  for  offices  and  buildings, 
and  the  procurement  of  needed  equipment  and 
supplies. 

All  the  expenditures  enumerated,  or  incident 
to  them,  form  a  part  of  the  cost  of  a  property, 
and  appear  in  the  returns  as  construction.  In 
some  cases  the  road  is  built  directly  by  the  com- 
pany, but  more  often  by  contractors.  At  one 
time  it  was  the  custom  to  let  railway  work  in 
small  contracts,  but  this  has  given  place  more  or 
less  to  the  practice  of  letting  the  work  to  one 
contractor  of  large  experience  and  means.  It  is 
thought  the  work  is  thus  simplified,  cheapened 
and  expedited. 

The  cost  of  railroads  per  mile  varies  greatly 
in  different  localities  and  under  different  circum- 
stances, as  I  have  had  frequent  occasion  to  ex- 
plain. It  is  affected  by  climate,  the  character  of 
the  soil,  the  cost  of  labor  and  supplies,  nature  of 
the  traffic  to  be  provided  for,  profile  of  country 
and  kindred  causes.* 

The  great  cost  of  many  European  railroads  is 
occasioned  by  the  outlay  they  were  subjected  to 

*  Great  expenditures  are  frequently  necessary  after  the  com- 
pletion of  a  road.  This  feature  is  illustrated  in  the  report  of  S. 
S.  Montague,  chief  engineer  of  the  Central  Pacific  Kailroad: 
"  Changes  are  taking  place  in  the  regimen  of  many  of  the  streams 
crossed  by  your  lines,  notably  the  Yuba  Kiver  at  Marysville. 
The  channel  of  this  stream  has  been  filled  to  a  depth  of  twenty 
or  more  feet  in  many  places,  and  at  the  point  of  crossing  by  the 
railroad  it  has  shifted  its  position  several  hundred  feet  since 
the  construction  of  the  bridge,  the  main  channel  being  now 
near  the  northern  or  Marysville  bank.  Two  additional  spans 
were  constructed  last  year  to  provide  for  this  channel,  and  it  is 
probable  that  u  further  extension  will  be  required," 


164     FINANCING,  CONSTRUCTING,  MAINTAINING. 

for  right  of  way  and  station  and  shop  grounds. 
They  found  the  land  occupied,  and  the  great  bulk 
of  it  highly  improved.  In  new  countries  vast 
tracts  were  still  but  sparsely  inhabited  when 
railroads  were  first  introduced,  while  prices  in 
the  most  densely  settled  localities  were  compara- 
tively low.  European  roads  were  moreover  con- 
structed in  a  more  permanent  manner  and  with 
greater  reference  to  the  possible  wants  of  the 
future  than  the  financial  condition  or  judgment 
of  owners  warranted  elsewhere.  Difference  in 
cost  is  further  heightened  by  differences  in  book- 
keeping. In  one  instance  everything  is  scrupu- 
lously charged  to  construction  and  capitalization, 
while  in  the  other  a  large  part  is  charged  to 
operating  expenses.  The  extent  of  the  latter 
practice  has  been  very  great.  I  cannot  better 
describe  it  than  by  quoting  what  the  railroad 
commissioners  of  Connecticut  have  said  in  regard 
to  the  additions  and  improvements  made  by  the 
railroads  of  that  state,  the  money  being  taken 
from  current  earnings.  "A  comparison  of  the 
present  with  the  former  condition  of  the  railroads 
of  the  state  enables  us  to  realize  the  extent  and 
importance  of  the  improvements  being  made 
from  year  to  year.  Take,  for  instance,  the  size, 
appearance,  cost  and  convenience  of  the  station 
buildings  in  most  of  the  important  business  cen- 
ters as  compared  with  those  which  preceded 
them.  The  old  structures  still  remaining  in  vari- 
ous parts  of  the  state  emphasize  this  contrast. 
Still  more  striking  is  the  contrast  between  the 


PARTICULARS  OF  CONSTRUCTION.  165 

strong,  permanent  stone  and  iron  bridges  which 
now  span  most  of  our  large  waterways,  and  the 
wooden  structures  which  were  displaced  by  them. 
Even  the  long  pieces  of  pile  bridging,  which  must 
necessarily  remain  for  a  long  time  to  come,  are 
gradually  being  floored  and  guarded  in  such  a 
manner  as  to  increase  their  strength  and  safety 
in  case  of  derailment.  Heavier  steel  rails  than 
those  formerly  used  are  being  laid  upon  those 
doing  the  largest  amount  of  business.  The 
amount  of  stone  ballast  is  yearly  increasing.  In 
no  one  particular  is  the  progress  being  made  so 
apparent  as  in  the  character  of  the  passenger 
equipment  now  being  brought  into  use  upon  our 
important  roads.  This  is  made  forcibly  evident 
when  it  becomes  necessary,  on  some  special 
occasion,  to  bring  out  and  use  the  equipment 
which  was  in  use  many  years  ago.  The  amount 
expended  by  the  various  companies  during  the 
past  year  for  repairs  of  roadbed,  track,  bridges, 
buildings  and  for  new  equipment,  indicates  that 
substantial  progress  has  been  made  in  each  of 
these  departments.  The  increased  weight  of  the 
locomotives  and  other  equipment  used  and  the 
increased  tonnage  of  freight  cars  require  a  more 
solid  roadbed,  heavier  rails  and  bridges  of  larger 
safe  carrying  capacity  than  were  formerly  needed, 
and  the  companies  are  realizing  and  meeting 
these  requirements."* 

What  was  done  in  Connecticut  has  been  done 
in  every  state  of  the  Union. 

*  Report,  1888. 


166     FINANCE,',  COXSTftrf'TlXH,  MAINTAINING, 

The  total  disbursements  of  a  railroad  for  con- 
struction purposes  can  never  be  accurately  deter- 
mined. Upon  the  books  of  no  company,  probably, 
is  cost  fully  set  forth.  There  are  difficulties  of 
accounting  that  prevent  it,  even  in  those  cases 
where  there  is  a  desire  to  ascertain  and  make 
known  the  amount.  Figures,  therefore,  that  pro- 
fess to  give  these  facts  are  incomplete. 

In  every  expenditure  a  railway  company  makes 
for  construction  purposes,  no  matter  how  charged 
on  the  books,  no  matter  whether  capitalized  or 
not,  the  community  is  interested.  All  classes  are 
favorably  affected  by  it,  from  the  man  who  digs 
coal  to  the  dealer  in  pins;  from  the  common 
laborer  to  the  banker;  from  the  manufacturer  of 
scientific  instruments  to  the  farmer  who  plows 
his  ground  or  tends  his  flock;  and,  as  a  railroad  is 
never  completed,  the  community's  interest  in  its 
disbursements  for  construction  never  ceases;  it 
is  always  growing.  New  wants  are  constantly 
suggested  by  the  needs  of  business  and  the  dis- 
covery of  cheaper  and  better  appliances.  These 
involve  further  outlay,  and  will  do  so  as  long  as 
men  continue  to  invent  or  railroads  continue  to 
grow.* 

*  In  this  connection  I  beg  to  refer  the  reader  to  the  book 
"  Disbursements  of  Kailways,"  forming  a  part  of  this  series.  It 
treats  of  a  subject  that  affects  construction,  and  several  of  its 
chapters  are  devoted  wholly  to  construction  work. 


CHAPTER   V. 

ELEMENTS    OF    CONSTRUCTION. 

Cost  of  construction  is  dependent,  as  I  have 
already  pointed  out  with  more  or  less  particu- 
larity, upon  the  character  of  the  road,  the  nature 
of  the  country,  the  season  of  the  year,  the  dis- 
tance from  source  of  supplies,  the  kind  of  mate- 
rial used,  the  amount  and  kind  of  business  to  be 
accommodated,  the  relative  cost  of  labor,  the 
ability  and  experience  of  the  engineer  and,  finally, 
the  skill  and  fidelity  exercised  in  procuring  the 
real  and  personal  property. 

A  road  built  during  a  period  of  inflated  prices 
will  cost,  it  is  apparent,  a  greater  sum  than  one 
constructed  at  a  more  opportune  time.  Certain 
portions  of  the  year  are  also  more  propitious  for 
work  of  this  character  than  others.  Moreover, 
the  work  done  then  is  more  satisfactory  and  the 
cost  of  operating  afterward,  less.  Circumstances 
concerning  the  soil  and  profile  of  a  country  gov- 
ern cost.  A  road  that  may  be  built  for  a  few 
thousand  dollars  per  mile  on  the  sandy  plains  of 
western  Nebraska  would  cost  many  times  the 
sum  in  the  Sierra  Madre  Mountains.  Character 
also  governs.  A  broad  gauge  road  is  not  only 
more  costly  than  a  narrow  gauge  line,  but  its 
machinery  and  equipment  are,  correspondingly, 

(167) 


168     FINANCING,  CONSTRUCTING,  MAINTAINING. 

more  expensive.  A  road  constructed  to  accom- 
modate a  large  traffic  has  more  elaborate  and 
expensive  facilities  than  a  property  built  to  ac- 
commodate a  light  business.  The  traffic  that  must 
be  hauled  to  market  over  heavy  grades  requires 
larger  and  more  costly  engines  than  a  line  where 
there  are  no  grades.  The  cost  of  constructing 
the  road  proper  is  also  much  greater.  Roads  are 
oftentimes  built  to  handle  a  particular  kind  of 
business.  Its  nature  may  be  discerned  in  the 
character  of  the  equipment  and  the  nature  of  the 
facilities  provided. 

The  appliances  of  railroads  are  unique  and  ex- 
haustive. Equipment  must  be  adapted  to  traffic. 
The  supply  from  which  to  choose  is  large  and  va- 
ried. The  measure  of  profit  a  company  reaps  is 
ever  largely  dependent  upon  the  adaptability  of 
its  equipment.  If  the  load  is  light,  a  light  loco- 
motive is  employed.  It  costs  less  in  the  first  in- 
stance, consumes  less  fuel  and  lubricants,  is  less 
destructive  to  the  track,  and  less  expensive  to 
keep  in  order  than  a  heavy  machine.  If  the  load 
is  great,  the  locomotive  must  correspond  to  the 
need.  The  roadbed,  superstructure  and  rails  of  a 
line  doing  a  small  business  may  also  be  much 
lighter,  and,  therefore,  cheaper  than  where  the 
traffic  is  large. 

Facilities  are  never  the  same  in  kind,  quantity 
or  cost.  Thus,  a  company  handling  ores  uses  dif- 
ferent cars  from  one  handling  merchandise. 
The  necessities  of  a  passenger  road  are  different 
from  those  of  a  freight  road.  Upon  such  a  line 


ELEMENTS  OF  CONSTRUCTION.  169 

expenditure  for  freight  will  be  comparatively 
light,  while  the  outlay  for  passengers  will  be  rel- 
atively great.  Upon  another  line  these  peculiar- 
ities will  be  reversed.  The  products  of  a  country 
and  the  character  of  its  people  fix  the  status  of 
a  property.  "A  densely  populated  district,  occu- 
pied by  a  manufacturing  or  a  mining  population, 
has  far  different  wants  from  those  of  an  agricul- 
tural population.  The  mountain  districts  of 
Scotland  or  the  sparsely  inhabited  portions  of 
Ireland  could  be  supplied  with  railway  commu- 
nication suited  to  their  wants  by  means  of  a  very 
different  mode  of  construction  from  that  neces- 
sary for  South  Staffordshire  or  the  metropolis."* 

Many  lines  are  constructed  wholly  with  a  view 
to  through  business.  Local  wants  receive  little 
or  no  consideration.  Again,  the  traffic  may  be 
wholly  local.  If  the  traffic  of  a  line  is  of  a  varied 
character,  it  is  discernible  in  the  arrangement  of 
station  and  yard  facilities,  in  the  character  of  the 
cars  and  the  adaptability  of  locomotives. 

A  glance  is  sufficient  to  distinguish  a  prosper- 
ous company  from  a  poor  one.  It  appears,  first, 
in  the  nature  of  the  construction  work,  and  after- 
ward in  its  condition.  One  will  be  well  kept,  the 
other  will  be  lean;  one  will  be  vigorous  and  ani- 
mated, the  other  feeble  and  lacking  in  purpose. 
The  roadbed  of  one  will  be  generous  in  proportion 
and  of  durable  character,  the  rails  will  be  heavy 
and  well  preserved,  the  cross  ties  broad  and  well 
together,  the  bridges  admirably  proportioned  and 

*  Koyal  Commission  on  Railways,  Report,  p.  xliii. 


170     FINANCING,  CONSTRUCTING,  MAINTAINING. 

of  durable  material,  the  culverts  constructed  of 
stone  or  iron  and  ample  to  meet  the  contingen- 
cies of  tempest  and  flood,  the  buildings  will  be 
large  and  well  arranged,  and  the  equipment  ex- 
tensive and  well  adapted  for  the  work.  The  other 
will  be  pinched  and  circumscribed,  with  a  con- 
tracted roadbed,  more  or  less  overgrown  with 
weeds,  with  light  rails,  ties  wide  apart,  buildings 
mean  in  appearance,  and  fences,  bridges  and  cul- 
verts needing  repair.  The  equipment  of  a  com- 
pany, more  than  anything  else,  perhaps,  indicates 
want  of  care  and  renewals.  If  an  unproductive 
line  does  not  present  the  outward  appearance  I 
have  indicated,  it  is  because  the  owner  pays  more 
than  his  share  of  the  losses  its  operation  entails. 
This  is  frequently  the  case,  especially  where  it 
forms  a  part  of  a  lucrative  property. 

Many  short  roads  are  required  to  be  built  from 
year  to  year  to  accommodate  local  wants.  They 
constitute  a  class.  Their  wants  are  few  and  the 
accommodations  should  be  limited  and  simple. 
They  ought,  however,  to  be  built  of  durable  mate- 
rial, according  to  approved  plans,  by  men  versed 
in  such  matters.  Otherwise  the  work  is  not 
likely  to  be  such  as  to  facilitate  economical 
operations  afterward.  However,  this  applies  to 
all  railroads. 

The  opportunity  for  making  money  through 
construction  contracts  and  otherwise  suggested 
the  building  of  lines,  in  many  instances,  that 
otherwise  would  not  have  been  thought  of.  The 
community  was,  at  one  time,  much  harassed  by 


ELEMENTS  OF  CONSTRUCTION.  171 

enterprises  of  this  character  in  the  United  States, 
and  investors  suffered  great  hardships  therefrom. 
Neighboring  enterprises  were  also  crippled,  for 
the  moment,  by  their  introduction.  The  con- 
struction of  these  speculative  enterprises  occa- 
sioned temporary  activity,  quasi  prosperity,  in 
the  community,  followed  by  corresponding  de- 
pression. A  railroad  that  is  not  needed  absorbs 
the  resources  of  a  country  without  rendering  a 
return,  and  until  the  amount  has  been  restored 
by  savings,  stringency  and  attendant  hardship 
ensue.  A  country  is  never  the  richer  for  rail- 
roads that  parallel  existing  lines.  This  inci- 
dental benefit,  however,  is  derived:  It  intensifies 
competition;  stimulates  men  to  do  their  best;  to 
invent  new  and.  better  appliances;  to  be  more 
attentive,  more  circumspect,  more  anxious  to 
please  their  customers;  to  do  more  and  better 
work  than  they  otherwise  would.  These  bene- 
fits, in  a  slight  way,  compensate  for  the  ills 
entailed. 

A  railroad  built  by  speculators  is  not  usually 
well  constructed.  Little  attention  is  paid  to  the 
needs  of  the  traffic  it  is  to  accommodate.  It  is 
built  to  sell,  and  the  slight  interest  of  its  projec- 
tors in  its  future  leads  them  to  do  many  things 
they  would  not  under  different  circumstances. 
The  securities  of  such  properties  are  generally 
jlaced  in  the  hands  of  agents  and  brokers  to  dis- 
pose of,  at  figures  that  would  destroy  their  credit 
if  known.  Inferior  material  is  used  and  the  work 
slighted  wherever  possible.  Large  profits  are 


172     FINANCING,  CONSTRUCTING,  MAINTAINING. 

also  made  in  the  construction  of  these  specu- 
lative properties  by  collusion  with  those  who 
furnish  construction  supplies.  The  equipment 
furnished  is,  as  a  rule,  superabundant  and  poor. 
The  full  extent  of  the  profligacy  of  the  builders 
is  never  apparent,  however,  until  after  the  prop- 
erty is  completed  and  the  cost  of  operating  it 
compared,  year  by  year,  with  gross  receipts  and 
the  expenses  of  neighboring  lines.  Then  de- 
fects are  realized,  and  the  full  amount  of  the 
wrong  becomes  apparent.  At  one  time,  in  the 
heyday  of  railway  enthusiasm,  the  construction 
of  speculative  railroads  was  a  common  thing. 
With  lapse  of  time,  and  greater  knowledge,  how- 
ever, they  have  been  rendered  less  frequent  be- 
cause of  inability  to  dispose  of  their  securities. 
The  lesson  was  a  severe  one  to  the  community, 
but  will  not,  on  the  whole,  prove  unprofitable. 

The  intelligence  and  experience  of  agents  are 
evinced  in  the  purchase  of  the  real  estate  and 
other  property  corporations  require  from  time 
to  time.  Generally  speaking,  it  is  of  a  suitable 
character  and  bought  at  the  lowest  figure. 
When  not,  the  fault  does  not  necessarily  imply 
action  purposely  inimical  to  the  owners.  It 
may  arise  from  lack  of  experience,  or  too  much 
haste.  As  a  rule,  the  agents  of  railroad  corpora- 
tions are  men  of  keen  appreciation  and  good 
judgment,  acting  only  after  mature  reflection, 
and  then  wisely  and  well.  Nor  can  they  be  ac- 
cused of  being  too  sanguine  or  too  precipitate. 
They  fear  the  accusation  of  extravagance  too 


ELEMENTS  OF  CONSTRUCTION.  173 

much  for  that.  They  are  extremely  cautious,  and, 
because  of  this,  opportunity  is  sometimes  allowed 
to  pass  before  action  is  taken.  More  frequently 
than  otherwise,  however,  in  such  cases  the  own- 
ers and  not  the  agents  are  to  blame.  Timidity  or 
ignorance  oftentimes  leads  the  former  to  place 
undue  restrictions  on  their  representatives.  The 
productiveness  of  properties  is  in  this  way  often- 
times seriously  crippled.  In  many  cases  lack  of 
money  or  credit  render  it  impossible  to  do  neces- 
sary work.  In  such  cases  there  is  nothing  to  do 
but  to  wait. 

Leaving  out  of  consideration  the  exceptional 
cases,  the  amount  of  a  company's  outlay  for  con- 
struction is  governed  by  just  needs  and  the  char- 
acter, extent  and  profitableness  of  the  business  to 
be  accommodated.  If  for  any  reason  property  is 
acquired  in  excess  of  just  wants,  such  disposition 
is  made  of  it  as  the  case  permits. 


CHAPTER  VI. 

TRACK — ITS    CONSTRUCTION    AND   EVOLUTION. 

The  cuts  contained  in  this  book  are  designed  to 
illustrate  the  evolution  of  track  appliances.  They 
depict  the  successes  and  failures  of  inventors,  and 
to  those  who  would  understand  the  subject  thor- 
oughly, details  in  regard  to  the  latter  are  almost 
as  necessary  as  particulars  in  regard  to  the  former. 

If  we  know  that  a  thing  has  been  tried  unsuc- 
cessfully, we  are  saved  making  experiments  on 
our  own  account.  It  is  this  phase  of  the  subject 
that  makes  the  failures  of  life  valuable.  The 
illustrations  portray  the  growth  of  the  track  of 
railways.  Many  of  the  physical  affairs  of  a  rail- 
road cannot  be  successfully  understood  from  a 
printed  account.  We  must  have  the  thing  illus- 
trated in  order  to  understand  it.  Thus  equipped 
we  may  in  a  short  time  acquire  information  that 
could  not  be  gleaned  in  practical  railway  life  in 
many  years.  However,  in  order  to  make  the 
information  their  own,  the  students  must  study 
it  not  idly  and  disconnectedly,  but  consecutively 
and  laboriously,  as  men  study  at  our  universities. 


The  track  and,  more  particularly,  the  rail,  next 
to  the  motive  power,  represent  the  central  idea 

(174) 


TEA CK—  CONSTR  UCTION  AND  EVOL  UTION.       \ 75 

of  a  railroad.  Progress  here  keeps  pace  with  im- 
provements in  other  branches  of  the  service.  A 
full  description  of  the  devices  of  the  track  that 
have  been  introduced,  some  of  which  have  been 
abandoned  while  others  have  remained  to  be  per- 
fected, would  fill  a  volume.  Such  of  them  as  I 
have  thought  necessary  to  a  clear  elucidation  of 
the  subject,  I  embrace  in  the  accompanying  illus- 
trations. Each  one  speaks  for  itself.  From  these 
pictures  the  reader  may,  without  weariness,  trace 
the  steps  by  which  the  track  of  a  railroad  has 
reached  its  present  high  standard.  I  am  indebted 
for  many  of  my  illustrations  of  early  appliances 
to  the  courtesy  of  officials  connected  with  the 
United  States  National  Museum,  and  wish  here 
to.  thank  them  for  their  kindness. 


When  in  the  beginning  men  began  to  use 
vehicles,  it  quickly  became  apparent  that  a  load 
could  be  hauled  with  greater  ease  on  a  road  with 
a  hard  surface  than  on  one  that  was  poor  and 
yielding.  This  brought  about  improvements. 
Similarly,  when  the  needs  of  carriage  became 
great,  as  they  did  in  the  eighteenth  century,  in 
connection  with  the  hauling  of  coal  from  the 
mines,  something  better  than  a  common  highway 
was  called  for.  The  slabs  or  strips  of  compara- 
tively smooth  stone,  as  devised  and  used  origi- 
nally by  the  Romans,  were  not  found  to  be  good 
enough.  The  result  was  the  invention  of  a  per- 
fectly smooth  track,  made  of  wooden  rails  or 


176     FINANCING,  CONSTRUCTING,  MAINTAINING. 

stringers  laid  parallel  with  each  other,  the  whole 
held  in  place  by  cross  ties  or  other  devices. 
Afterward  these  rails  were  covered  with  sheets 
of  iron  in  order  to  make  them  more  durable. 
This  was  called  the  "  strap  "  rail. 

Rails  were  first  cast;  afterward,  early  in  the 
nineteenth  century,  they  were  rolled.  In  1767 
the  first  iron  rail  was  cast  at  Colebrookdale,  Eng- 
land. This  was  a  great  stride  forward.  It  was 
three  feet  long,  four  inches  wide  at  the  top,  and 
three  inches  high.  This  progressive  step  pre- 
pared the  way  for  the  locomotive  when  it  should 
be  evolved.  However,  the  rail  thus  cast  proved 
to  be  too  light,  but  the  difficulty  was  overcome 
by  making  the  carts  or  wagons  smaller  and  coup- 
ling a  number  of  them  together  instead  of  having 
one  big  vehicle.  Thus  the  train  came  into  being. 
Shortly  afterward  it  was  found  possible  to  cast 
a  rail  six  feet  long;  in  1815  it  had  grown  to  fif- 
teen feet;  still  later  to  thirty  feet. 

The  modern  form  of  "  T  "  rail,  with  its  support- 
ing base,  was,  it  is  said,  devised  by  Robert  L. 
Stevens,  of  the  Camden  &  Amboy  Railroad,  in 
1830.  The  especial  value  of  his  rail  consisted  in 
the  fact  that  it  rendered  the  use  of  cheap  wooden 
ties  practicable.  It  also  obviated  the  necessity 
of  the  expensive  chair  and  other  devices  then  in 
use.  Inability  to  pay  for  these  appliances  in 
America  necessitated  adopting  something  where- 
by the  expense  might  be  avoided.  However, 
notwithstanding  its  wide  base,  the  rail  is  found 
to  cut  more  or  less  into  the  tie.  With  the 


TRACK— CONSTRUCTION  AND  EVOLUTION,       177 


constantly  increasing  weight  of  equipment  and 
load  this  defect  is  accentuated.  One  of  the  means 
of  overcoming  it  is  the  use  of  a  "  chair,"  or  metal 
plate,  placed  between  the  rail  and  its  support. 
Another,  the  use  of  a  metal  tie. 


Jessop's  Cast-iron  Fish-bellied  Rail,  A.  D.  l?89.-[NoTE:  The  attention  of 
the  reader  is  particularly  called  to  the  fact  that  in  the  accompanying  illustra- 
tions notonly  the  form  of  the  rail  is  shown,  but  also  the  fastenings,  splice 
>ars,  chairs,  ties  and  other  details  of  interest  connected  with  the  track.] 

In  1789  William  Jessop  first  introduced  a  rail 
with  a  smooth,  level  top,  substituting  a  wheel 
with  a  flange  for  the  old-fashioned  form.  This 
simple,  yet  ingenious,  device  at  once  revolution- 
ized previous  practices.  Before,  a  flange  or 
something  of  the  kind  had  formed  a  part  of  the 
rail  in  order  to  keep  the  wheel  on  the  track. 
This  not  only  added  to  the  cost  of  the  rail,  but 
rendered  it  less  strong  and  more  easily  worn  out. 
The  flanged  wheel  cleared  the  sky.  In  1797  Jes- 
sop also  contributed  to  the  development  of  rail- 
roads by  inventing  the  iron  chair,  which  he 


4 


The  First  Rail  Chair.    Newcastle-on-Tyne,  A.  D.  1797 
12    Vol.  3 


178     FINANCING,  CONSTRUCTING,  MAINTAINING. 

inserted  between  the  rail  and  the  tie.  Rails  at 
this  time  were  very  light,  and  the  load  and  speed 
were  made  to  correspond.  In  1825  the  rail  used 
weighed  twenty-eight  pounds  per  yard.  In  1830 
it  had  been  increased  to  thirty-five  pounds; 
shortly  afterward  to  fifty  pounds,  then  to  sixty- 
five  pounds  and  so  on  according  to  the  need.* 

Up  to  the  time  the  locomotive  was  rendered 
practicable,  railroads  were  used  mainly  for  haul- 
ing coal  and  were  called  tramways.  The  inven- 
tion of  the  iron  rail  was  what  suggested  the 
name  of  railway.  Wrought-iron  rails  were  not 

*In  illustration  of  this,  the  standard  of  the  Eastern  Railway  of 
France  we  are  told  was,  in  1897,  eighty-eight  pounds.  The  rails 
rested  on  strips  of  tarred  felt  placed  on  the  ties.  The  rails  on 
the  Belgian  state  railways  were  spliced  with  two  angle  bars 
twenty-eight  and  three-fourths  inches  long,  each  weighing 
forty-seven  pounds.  Metal  tie  plates  were  used  on  every  tie  on 
tangents  and  curves,  except  the  joint  ties  on  which  rested  the 
broad  flanges  of  the  splice  bars.  Maintenance  on  similar  lines 
with  heavy  and  fast  traffic  is  said  to  have  cost  about  three 
hundred  and  fifty  dollars  per  mile  per  year  for  labor.  The  track 
must  approximately  be  renewed  once  in  fifteen  years,  costing 
on  an  average  nine  hundred  and  seventy  dollars  per  mile  for 
material.  The  standard  track  of  the  East  Indian  Eailway  at  the 
time  mentioned  above  was  laid  with  eighty-five  pound  bull- 
head rails,  spliced  by  twenty-two  inch  bars  and  four  bolts. 
The  ties  were  of  creosoted  pine  or  sal.  The  approximate  cost 
of  maintenance  of  way  is  said  to  have  been  six  hundred  and 
twenty-five  dollars  per  mile  per  year.  The  Great  Indian 
Peninsular  Eailway  was  laid  with  double-headed  rails  (laid  in 
chairs  on  teak  and  creosoted  pine  ties)  weighing  sixty-nine  and 
eighty-six  pounds  per  yard.  The  ties  were  ten  by  five  inches, 
ten  feet  long,  their  life  varying  from  twelve  to  fifteen  years. 
One-third  of  the  track  of  the  Great  Northern  Eailway  of  Ireland 
was  laid  with  eighty-five  pound  bull-head  rails  and  two-thirds 
with  eighty-pound  T  or  flange  rails.  The  ties  were  creosoted, 
and  would  last  from  twelve  to  eighteen  years. 


TRACK— CONSTRUCTION  AND  EVOLUTION.       179 

manufactured  until  about  1805.  They  were  two 
feet  long,  but  never  came  into  general  use.  At 
first  the  cross  tie  was  used  only  at  the  ends  of  the 
rails.  There  the  two  were  fastened  together,  as 
the  illustrations  suggest.* 

In  many  cases  ties  were  not  used  at  all,  but 
stationary  blocks  or  piling  instead.  The  usual 
way  was  to  support 
the  rail  midway 
with  stone  blocks. 
Al  1  things  being 
new,  every  kind  of 
experiment  was 
tried.  Among 
other  things,  the 
need  of  elasticity  A  Railway  of  A.D.ISOO. 

in  a  track  was  not 

known,  and  hence  great  pains  were  oftentimes 
taken  to  lay  the  rails  on  the  solid  rock  or  on  a 
concrete  base.  It  was,  however,  soon  discov- 
ered that  such  lack  of  elasticity  quickly  destroyed 
the  superstructure  as  well  as  the  locomotives  and 
cars.  Something  else  had  therefore,  to  be  tried. 
The  stone  blocks  used  to  support  the  rails  were 
found  to  be  nearly  as  bad  as  the  solid  base.  Re- 
lief was  not  found  until  the  ballasted  wooden 
tie  was  adopted.  These  experiments,  with  many 
others  of  a  similar  nature,  went  hand  in  hand 

*  While  the  cross  tie  is  generally  used  by  railroads  through- 
out the  world,  the  Great  Western  Railway  of  England  uses  a 
longitudinal  support  for  its  rails.  Such  support  was  quite 
common  in  the  early  days  of  railroading,  but  has,  as  a  rule,  been 
abandoned. 


180   FINANCING,  CONSTRUCTING,  MAINTAINING. 

with  the  continued  betterment  of  the  rail  that 
occurred  previous  to  the  introduction  of  the 
locomotive,  the  moderate  speed  attained  on  the 
tramways  had  not  rendered  the  solid  roadbed 
particularly  objectionable,  and  so  its  destructive 
features  were  not  noticed. 

In  the  beginning,  when  attention  was  called 
to  the  wooden  tie  it  was  lightly  regarded  as  not 
being  sufficiently  durable.  However,  its  great 
availability  was  quickly  discovered  and  hence- 
forward it  was  fully  utilized.  The  English,  with 


LeCann'B  Tram  Rail,  requiring  neither  bolts  nor  spikes.    Wales,  A. IX  1801. 

the  provident  habits  peculiar  to  them,  quickly 
discovered  that  by  the  process  of  creosoting,  the 
durability  of  the  tie  or  stringer  could  be  greatly 
prolonged. 

At  first  it  was  deemed  necessary  to  strengthen 
the  rail  between  the  supports  upon  which  it 
rested.  Thus  the  top  and  bottom  of  the  rail  were 
not  parallel.  The  object  sought  was  attained,  so 
far  as  possible,  in  various  ways,  but  the  fish-bel- 
lied form  of  rail,  shown  elsewhere,  was  thought 
to  accomplish  the  purpose  more  effectively  than 
any  other.  Afterward,  however,  upon  careful 
experiments  being  made,  it  was  found  that  a  rail 


TRA  CK—COXS TR  UCTION  AND  E VOL  UTION.       \ 8 1 

with  a  straight  top  and  bottom  (the  lines  running 
parallel  with  each  other),  supported  by  cross  ties, 
was  better  than  any  other  form.  This  was  about 
the  time  the  Liverpool  &  Manchester  Railway  was 
opened,  in  1830. 

No  rigid  connection  between  the  ends  of  the 
rails  laid  in  a  track  was  made  until  1847.  Prior 
to  that  time  they  were  placed  one  against  the 
other  in  a  chair,  especially  designed  for  the  pur- 
pose, called  a  joint  chair.  The  ends  of  the  rails 
were  not  held  securely  in  this  chair,  but  could 
slide  past  each  other  and  were  quickly  ruined  by 


Wyatt's  Hexagonal  Rail,  North  Wales,  A.  D.  1802. 

the  wheels  jolting  over  the  uneven  surface.  In 
1847  fish  plates  for  uniting  the  ends  of  the  rails 
were  introduced,  and  Ihe  device  has  since  been 
generally  adopted.  By  this  means  the  rails  are 
firmly  held  together,  affording  an  even  surface 
at  the  top.  The  fish  plate,  a  strip  of  iron  about 
an  inch  thick,  was  placed  on  either  side  of,  but 
not  touching,  the  web  of  the  rail,  the  edges  of 
the  plate  being  made  to  perfectly  fit  the  sloping 
sides  of  the  head  and  foot  of  the  rail.  The  fish 
plate  is  held  in  place  by  bolts,  called  fish  bolts, 
which  pass  through  the  rail  and  the  two  fish 
plates  (one  on  either  side  of  the  rails),  drawing 


182     FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  plates  together  and  tightening  their  edges 
against  the  rail.  The  rail  was  further  strength- 
ened at  the  fish  joint  by  the  cross  ties  being  laid 
nearer  each  other  there  than  in  other  portions  of 
the  track.  The  efficiency  of  the  fish  joint  de- 
pends upon  the  plates  being  kept  securely  in 
their  place.  They  require  to  be  frequently 
looked  after  and  the  bolts  screwed  up,  as  they 
are  liable  to  work  loose  with  the  jar  of  the  trains 
passing  over  them.  Various  styles  of  fish  plates 
and  fastenings  have  been  introduced,  the  object 
being  to  find  some  way  for  holding  the  bolt  and 
nut  firm  after  being  screwed  into  place,  so  they 
cannot  work  loose. 

The  custom  prevails  of  imbedding  the  ties  in 
ballast,  so  as  to  deaden  noise  and  lessen  the  jar 
and  vibration,  and  for  other  good  reasons.  It  is 
recommended  as  a  practice  in  England  to  raise 
the  ballast  to  the  level  of  the  top  of  the  rail  in 
switching  yards  as  a  protection  to  switchmen  in 
going  in  and  out  between  the  cars. 

The  ballast  of  a  railroatl  necessarily  conforms 
to  the  material  which  the  company  is  able  to 
secure  for  this  purpose.  Because  of  this,  and 
because  of  lack  of  unanimity  as  to  what  is  best, 
the  kind  of  ballast  used  and  the  method  of  apply- 
ing it  upon  different  roads  vary.  Speed  of  trains 
and  the  traffic  of  a  road  are  important  factors  in 
determining  the  kind  of  ballast  and  the  quantity 
required.  However,  cheap  and  inadequate  mate- 
rial is  often  used  because  of  the  inability  of  .- 
company  to  pay  for  anything  better. 


TRA CK—CONSTR UCTION  AND  EVOL UTION.       \ 83 

The  manner  of  applying  ballast,  while  more 
generally  understood  than  formerly,  is  still  more 
or  less  a  question  of  experiment  and  personal 
opinion.  Thus,  the  ballast  of  the  Lancashire  & 
Yorkshire  Railway  is  composed  of  a  bottom  course 
of  stone  pitching  nine  inches  deep,  three  inches 
of  ashes  and  a  top  ballast  of  cinders.  On  the 
Eastern  Railway  of  France  it  is  of  broken  stone, 
gravel  and  furnace  slag.  On  the  Great  Northern 
Railway  of  Ireland  the  ties  are  laid  in  six  inches 
of  broken  stone  ballast  above  a  six-inch  paved  or 
telford  foundation.  The  ballast  of  the  Belgian 


Tram  Rail,  Surrey  Railway,  A.  D.  1803. 

state  railways  is  of  broken  stone — basalt,  por- 
phyry and  sandstone.  The  standard  ballast  of  the 
Pennsylvania  Railroad  consists  of  stone  ten  inches 
deep  under  the  center  of  the  cross  tie.  The  stone 
is  broken  to  a  size  not  larger  than  a  cube  that 
will  pass  through  a  two  and  one-half  inch  ring, 
and  is  cleaned  from  dust  by  passing  over  a  screen. 
The  smaller  stones  are  used  for  dressing  and  sur- 
facing.* Gravel  is  the  standard  ballast  of  the 
Chicago  &  North- Western  Railway,  twelve  inches 
(deep  beneath  the  ties.  The  center  of  the  roadbed 

*  See  diagrams  of  Pennsylvania  track  herein, 


184     FINANCING,  CONSTRUCTING,  MAINTAINING. 

between  the  ties  is  filled  in  even  with  the  top 
of  the  ties.  Stone  ballast  is  also  used,  the  stone 
being  broken  to  a  size  that  will  pass  through  a 
three-inch  ring.* 

Shingle  from  the  ocean  beach  is  sometimes  used 
on  coast  lines  and  forms  an  excellent  ballast 
when  free  from  shells,  which  latter,  when  they 
become  crushed,  make  dirt. 

The  railways  of  the  United  States  differ  from 
those  of  European  countries  in  this,  that  the  latter 
were  built  for  an  existing  population.  Their  con- 


BOTTOM  V/EW 
Woodhouse's  patent  Concave  Rail  for  wagons,  A.  D,  1803. 

struction  was,  therefore,  in  a  measure,  adapted  to 
known  traffic.  In  the  United  States  they  were 
generally  built  in  advance  of  the  population. 
They  were,  consequently,  of  lighter  construction. 
Moreover,  money  with  which  to  build  was  scarce, 
and  the  anticipated  revenues  did  not  warrant 
great  outlay  in  construction.  As  business 
increased,  improvements  have  been  made. 

Various  conditions  enter  iato  the  relation 
between  track  and  traffic.  Safety  and  economy 
are  important  factors.  A  light  track  which 

*  See  diagram  pf  Chicago.  &  North-western  track  herein. 


TRACK— CONSTRUCTION  AND  EVOLUTION.       185 

would  answer  every  purpose  on  a  level  and 
straight  line  of  road  may  be  dangerous  and 
expensive  on  steep  grades  and  sharp  curves.  The 
speed  of  trains  and  the  frequency  with  which 
they  are  run  must  be  considered  in  connection 
with  the  strength  of  a  track.  The  question  of 
maintenance  also  enters  into  the  subject.  New 
and  heavy  rails  put  into  service  on  a  poor  road- 
way, with  insufficient  ballast,  loose  spikes  and 
worn  or  decayed  ties,  could  not  be  expected  to 
make  a  good  track,  nor  to  last.  The  whole  struc- 
ture should  correspond  with  the  uses  to  which  it 
is  to  be  put.  The  track  of  a  railway  should  not 
be  allowed  to  deteriorate  beyond  a  certain  point; 
otherwise,  the  expense  of  maintenance  and 
renewals  is  very  heavy  and  frequently  results, 
practically,  in  a  reconstruction  of  the  track. 

A  noticeable  feature  of  American  railways,  in 
contradistinction  to  those  of  other  countries,  is 
the  enormous  traffic  hauled  in  great  trains  by 
heavy  engines  over  a  light  track.  It  is  claimed 
by  authorities  on  the  subject  that  railway  en- 
gineers have  been  less  energetic  in  asserting  the 
needs  of  the  track  than  the  master  car  builders 
and  superintendents  of  motive  power  have  been 
in  asserting  the  needs  of  equipment;  in  other 
words,  the  track  of  American  railways  has  not 
been  kept  up  to  so  high  a  standard,  relatively,  as 
the  rolling  stock.  The  engineer,  it  is  asserted,  is 
not  fully  in  touch  with  the  equipment  and  oper- 
ating departments.  If  loads  are  increased  and 
more  powerful  engines  used,  the  track  should  be 


186     FINANCING,  CONSTRUCTING,  MAINTAINING. 


Tram  Rail  with  stone  supports,  upon  which  Trevithick's  first  locomotive  ran. 

kept  in  harmony  with  these  conditions.  The 
following,  it  has  been  stated,  are  among  the 
important  points  to  be  considered  in  improving 
the  track  to  conform  to  the  requirements  of 
traffic : 


TRA  CK—  CONS  TR  UCTION  AND  E  VOL  UTION.       \ 87 

Weight,  age,  character  of  wear,  quality  and 
price  of  rails. 

Kind  of  joints,  their  condition,  life  of  angle 
bars,  size  of  bolts,  and  amount  of  maintenance 
work  expended. 

Expenses  for  maintenance  and  renewals  of  rail 
fastenings. 

Kind,  price  and  life  of  ties. 

Number  of  switches  and  frogs  in  use,  amount 
of  reduction  possible  without  affecting  the  move- 
ment of  trains,  and  their  relation  to  the  wheels. 

Quality  and  quantity  of  ballast,  efficiency  of 
drainage,  and  cost  of  replacing  gravel  with  stone 
ballast. 

Cost  of  intelligent  and  efficient  foremen  and 
section  men. 

Cost  of  changing  lines  (when  necessary)  to 
obviate  the  necessity  of  curves  and  grades,  proper 
arrangement  of  yards,  and  proper  equipment  of 
track  with  automatic  signals. 

Weight  of  locomotives,  number  in  use,  fre- 
quency of  runs,  wheel  base,  and  condition  of 
tires. 

Weight  and  capacity  of  cars,  and  condition  of 
wheels. 

Number  of  cars  per  train,  average  load  each 
way,  number  of  trains,  speed  and  weight. 


In  passing  around  a  curved  track,  the  centrif- 
ugal force  of  the  train  has  a  tendency  to  make 
the  flanges  of  the  wheels  on  the  outside  of  the 


188     FINANCING,  CONSTRUCTING,  MAINTAINING. 

curve  press  against  the  rail  with  a  force  depend- 
ent on  the  weight  of  the  load,  the  size  of  the 
curve  and  the  speed  of  the  train.  This  is  coun- 
teracted by  elevating  the  outer  rail  above  the 
inner  one,  the  amount  of  such  elevation  being 
determined  by  a  consideration  of  the  maximum 
speed  at  which  trains  will  travel  round  the  curve. 


In  the  early  history  of  railways  in  America  the 
construction  of  tunnels  was  little  understood,  and 
because  of  this  the  work  was  improperly  per- 
formed, resulting  in  great  waste  of  resources  and 


Carlisle's  Wrought  (rolled)  Iron  Rail,  A.  D.  1811. 

embarrassment  in  the  operation  of  the  roads. 
However,  with  experience  and  acquired  knowl- 
edge, the  difficulties  of  the  situation  have  become 
familiar  to  us  and  so  have  been  overcome.  An 
engineer  of  experience,  in  speaking  of  the  con- 
struction of  tunnels,  points  out  the  desirability 
of  their  being  straight  whenever  possible,  in 
order  to  afford  the  engineer  a  view  of  the  entire 
length  when  his  train  enters  a  tunnel.  Provision 
is  also  to  be  made  for  ventilation.  This  is  some- 
times accomplished  by  means  of  a  fan  operated 
by  a  stationary  engine  in  a  shaft  in  the  center  of 
the  tunnel.  If  a  double  track  is  laid,  ventilation 
may  be  aided  by  constructing  a  middle  partition 


.   TRACK— CONSTRUCTION  AND  EVOLUTION.       189 

(or  brattice)  lengthwise  of  the  tunnel  between 
the  tracks,  so  the  currents  of  air  created  by  trains 
passing  through  in  opposite  directions  will  not 
become  mixed.  If  the  tunnel  is  not  too  long,  the 
currents  thus  raised  will  be  strong  enough  to 
move  the  air  throughout  its  entire  length  unless 
they  are  impeded  by  conflicting  currents.  When 
such  a  partition  is  built,  the  tunnel  must  be  wider 
than  would  otherwise  be  necessary,  as  the  space 
between  the  two  tracks  should  be  at  least  eight 
feet  in  width.  In  making  a  tunnel  through  the 


Lost  &  Stephenson's  Edge  Rail,  Stockton  &  Darlington  Railroad,  A.  D.  1816. 

side  of  a  hill  where  the  pressure  on  the  two  sides 
is  not  equal,  special  care  should  be  exercised  lest 
the  sides  of  the  tunnel  be  damaged  by  the  un- 
equal pressure  and  the  hillside  rendered  unstable. 
Recesses  should  be  made  in  the  sides  of  tunnels, 
into  which  trackmen  may  retire  while  trains  are 
passing,  and  in  which  they  may  place  their  tools.* 
The  term  "permanent  way"  represents  the  ma- 
terials used  in  constructing  the  road  on  which 
vehicles  are  to  run,  as  distinguished  from  those 
used  by  contractors  temporarily  in  constructing 
a  line  for  conveying  material  from  place  to  place, 
making  embankments,  etc.  By  permanent  way 

*  Mr.  Johu  Wolfe  Barry. 


190     FINANCING,  CONSTRUCTING,  MAINTAINING. 

is  meant  ballast,  ties,  rails,  chairs,  fastenings,  fish 
plates,  switches,  crossings,  etc. ;  in  fact,  the  whole 
structure  complete. 

The  track  formed  of  two  rails  laid  parallel  to 
each  other,  upon  which  locomotives  and  cars  run, 
is  technically  known  as  the  "line  of  way."  The 
distance  between  the  two  rails  is  called  the  "gauge 
of  the  line." 

The  gauge  generally  accepted  and  known  as 
the  standard  is  four  feet  eight  and  one-half  inches. 

An  interesting  feature  in  connection  with  the 
development  of  the  track  has  been  the  question 
as  to  what  was  the  best  gauge  to  adopt  as  the 


Birkeushaw's  Wrought-Iron  Rail,  A.  D.  1820. 

standard.  When  the  nomadic  tribes  of  primi- 
tive days  used  their  vehicles  for  habitations,  the 
width  between  the  wheels  was  much  broader 
than  now.  Their  purposes  were  facilitated  by  a 
broad  gauge.  However,  when  wagons  were  built 
for  use  simply  as  vehicles,  the  gauge  was  reduced 
until  about  what  it  is  to-day.  Utility  decided 
what  was  best.  When  railway  vehicles  were 
introduced,  lack  of  practical  information,  coupled 
with  the  disposition  of  man  to  experiment,  led  to 
the  adoption  of  many  different  gauges.  The 
variations  in  the  United  States,  it  is  probable, 
exceeded  those  of  any  other  country.  Our  lines 
were  more  scattered. 


TRACK— CONSTRUCTION  AND  EVOLUTION.       191 

The  advocates  of  the  broad  gauge,  notably  led 
by  the  Great  Western  Company  of  England, 
believed  they  had  discovered  what  was  best.  On 
the  other  hand,  gauges  even  narrower  than  what 
is  now  recognized  as  the  standard  (four  feet  eight 
and  one-half  inches)  had  many  advocates.  The 
very  narrow  gauge  roads,  however,  were  more 
often  necessitated  by  a  slender  purse  than  a 
belief  that  they  were  the  best.  Hence  it  has  fol- 
lowed naturally  that,  as  their  owners  have 
acquired  capital,  the  gauge  has  been  changed  to 
conform  to  the  standard. 


HETTON  RAIL 
1824 


The  widest  gauge  ever  used  was  that  adopted 
by  Brunei  for  the  Great  Western  of  England — 
seven  feet.  He  claimed  it  was  the  safest,  steadiest 
and  most  comfortable  and,  moreover,  that  better 
time  could  be  made  on  such  a  track.  His  claims 
were  proven  not  to  be  well  founded,  while  his 
gauge  necessitated  a  much  greater  outlay  than 
the  other,  as  the  engines  and  cars  had  to  be  larger 
and  stronger  and  the  track  much  heavier  than  a 
more  moderate  gauge.  A  gauge  of  ten  inches  is 


192     FINANCING,  CONSTRUCTING,  MAINTAINING. 

said  to  be  the  narrowest  ever  devised.  Such  a 
road  was  built  by  a  railway  contractor  named 
Mansfield  for  his  own  use  in  1874. 

The  battle  of  the  gauges  was  among  the  first 
and  most  bitter  of  the  railway  contests.  It 
occurred  in  England.  The  contest  ended  in  the 
first  instance  by  the  adoption  nominally  of  two 
standards,  viz.:  seven  feet  and  four  feet  eight  and 
one-hdf  inches,  respectively.  The  latter  is  now 


An  early  Frog  pattern. 

the  standard,  the  former  having  become  obsolete 
with  its  final  abandonment  by  the  Great  Western 
Railway  in  1892.  The  necessity  of  traffic,  how- 
ever, resulted  at  an  early  day  in  laying  a  third 
(standard)  rail  in  many  instances  on  the  broad 
gauge  lines.  In  India  the  government  adopted  a 
gauge  of  five  feet  six  inches,  impelled  to  such 
conclusion,  it  is  said,  by  considerations  of  the 
advantage  such  a  gauge  afforded  for  the  con- 
venient arrangement '  of  the  machinery  of  the 
locomotive. 


TRACK—  CONSTRUCTION  AND  EVOLUTION.       193 

On  the  continent  of  Europe,  where  the  govern- 
ment has  exercised  more  or  less  supervision  from 
the  start,  uniformity  has  been  required  in  gauges. 
If  the  roads  were  broad  gauge,  the  dimensions 
conformed  to  that  style,  and  if  narrow,  then  to 
that  pattern.  So  there  have,  practically,  been 
but  two  gauges.  In  this  respect  government 
supervision  has  been  beneficial. 

The  adoption  of  a  gauge  of  four  feet  eight  and 
one-half  inches  in  the  first  place  (prior  to  the  intro- 


Frogs,  Colliery  Railroads  of  England,  A.  D.  1825. 

duction  of  the  locomotive),  was  accidental  rather 
than  calculated.  It,  however,  led  to  its  use  by 
other  tramways  modeled  upon  it.  When  the 
locomotive  was  introduced,  this  gauge,  more  gen- 
erally in  use  than  any  other,  was  accepted  for 
that  reason,  and,  as  neighboring  lines  were  con- 
structed, the  convenience  growing  out  of  uni- 
formity led  to  its  recommendation  by  George 
Stephenson. 

The  first  railroad  or  wooden  way  having  a  four 
foot  eight  and  one-half  inch  gauge  was  built,  in 

13    Vol.  3 


i  94     FINANCING,  CONSTR  UCTING,  MAINTAINING. 

1630,  in  Newcastle-on-Tyne.  Originally  the 
gauge  was  measured,  not  from  the  inside,  but 
from  the  outside  of  the  rails.  In  this  way  the 
first  railroad  had  a  gauge  of  five  feet,  but  after 
subtracting  the  width  of  the  two  rails  the  inside 
measurement  was  found  to  be  four  feet  eight 
and  -one-half  inches.  This  gauge  is  compulsory 
in  England,  Belgium,  France,  Italy  and  Ger- 
many. It  is  also  in  use  on  the  greater  part  of 
the  mileage  of  Europe.  Spain,  however,  has  a 


Switches  in  Colliery  Railroads,  England,  A.  D.  1825. 


gauge  of  five  feet  six  inches,  while  Russia  has 
one  of  five  feet.  In  the  United  States,  while  nar- 
row guage  railroads  are  sometimes  constructed, 
for  financial  or  other  reasons,  there  is  practically 
a  standard  gauge  throughout.  In  Ireland  the 
gauge  was  settled  by  Parliament,  in  1846,  at  five 
feet  three  inches. 

In  the  operation  of  connecting  lines,  where  the 
gauges  are  different,  it  is  the  practice,  in  some 
instances,  to  lift  the  train  bodily  from  the  trucks 
of  one  gauge  to  those  of  another.  In  such 


TRA  CK—  CONS TR  UCTION  AXD  E VOL  UTION.       195 

cases,  of  course,  the  cars  are  fitted  with  suitable 
machinery. 

In  the  appendix  attached  to  this  volume  will 
be  found  a  table,  more  or  less  complete,  showing 
the  gauges  of  railways  in  use,  at  one  time  or  an- 
other, in  different  countries  of  the  world.* 

It  is  important  that  every  portion  of  the  per- 
manent way  shauld  be  sufficiently  strong  to  bear 
the  weight  of  the  heaviest  load  to  be  transported 
over  the  line,  as  the  strain  to  which  a  line  is  sub- 
jected is  determined  by  the  greatest  load  carried 
on  any  one  pair  of  wheels. 

The; heaviest  load  carried  is  on  the  driving 
wheels  of  the  locomotive.  The  power  of  the  en- 
gine, as  applied  to  the  hauling  of  a  train,  is 
through  the  adhesion  due  to  the  insistent  weight 
of  the  drivers  upon  the  rails.  This  weight  is  very 
destructive  to  the  permanent  way,  and  efforts 
have  been  made  to  distribute  it  by  adding  more 
driving  wheels,  coupled  together,  without  losing 
any  portion  of  the  tractive  force  of  the  locomo- 
tive. It  is  claimed,  however,  that  an  engine 
with  one  pair  of  drivers  travels  easier  and  with 
less  friction  than  a  coupled  engine.  When  means 
are  devised  for  applying  the  tractive  force  of  the 
locomotive  through  the  various  wheels  of  the  ve- 
hicles in  the  train,  the  strain  on  the  permanent 
way  will  be  materially  lessened  and  the  expense 
of  operating  greatly  reduced. 

In  constructing  a  railway  capable  of  carrying 
heavy  loads,  the  following  general  principles  are 

*  Appendix  E. 


196     FINANCING,  CONSTRUCTING,  MAINTAINING. 

laid  down  by  those  versed  in  such  matters:  The 
surface  of  the  ties  resting  on  the  ballast  should 
be  large  enough  to  keep  them  from  settling  un- 
der the  pressure  brought  upon  them;  the  bearing 
surface  of  the  rails  or  chairs  (if  the  latter  are 
used)  should  be  sufficient  to  prevent  their  crush- 
ing or  settling  into  the  ties;  the  rail  should  be  of 
sufficient  strength  not  to  deviate  either  sideways 
or  vertically,  except  within  the  proper  limits  of 
its  elasticity;  the  two  rails  constituting  a  track 
should  be  kept  from  spreading  apart  by  secure 
fastenings;  the  ends  of  the  rails  should  be  con- 


George  Stephenson's  Fish-Belly  Rail,  Manchester  &  Liverpool  Railway, 
A.   D.   1829. 

nected  in  such  a  way  that  the  joints  will,  as 
nearly  as  possible,  be  as  strong  as  the  rest  of  the 
line;  the  rails  should  be  made  of  material  that 
will  resist  intense  strain,  great  pressure  and  the 
wear  and  tear  caused  by  the  sliding  of  wheels; 
the  whole  track  structure  must  possess  a  certain 
degree  of  elasticity  when  trains  pass  over  it. 

In  laying  rails  the  expansion  and  contraction 
of  the  metal,  caused  by  changes  in  temperature, 
must  be  taken  into  consideration  and  allowance 
made  therefor  by  having  the  holes  in  the  rails 
larger  than  the  bolts  to  be  used,  or  of  a  different 
shape. 


TRACK—CONSTRUCTION  AND  EVOLUTION.       197 


The  rails  (or  chairs,  in  case  the  latter  are  used) 
are  fastened  to  the  ties  by  spikes,  treenails,  wood 
screws,  or  fang  bolts.  A  spike  is  a  cylindrical  iron 
bar  with  a  head,  and  is  driven  into  a  hole  in  the 
tie  which  has  been  bored  a  little  smaller  than  the 
spike  in  order  that  the  latter  may  be  held  more 
firmly.  The  shrinking  of  the  timber,  however,  is 
liable  to  loosen  the  spikes  in  a  short  time.  The 
spikes  should  exactly  fit  the  holes  in  the  chairs. 

Treenails  are  wooden  spikes  which  have  been 
compressed  by  machinery  and  all  moisture  driven 
out  of  them  before  be- 
ing used  in  the  track. 
When  placed  in  the 
track  they  are  held 
firmly  in  their  place  by 
absorbing  moisture  and 
swelling.  Treenails  af- 
ford a  good  fastening 
while  in  perfect  condi- 
tion, but  the  liability  of 
their  becoming  ineffi- 
cient because  of  decay 
had  led  to  the  general 
use  of  iron  spikes  in 
connection 
In  some 

bination  of  spike  and 
treenail  has  been  employed,  the  treenail  consisting 
of  a  hollow  cylinder  of  compressed  wood  into 
which  an  iron  spike  is  driven  after  the  treenail  has 
been  inserted  into  the  tie. 


Rail  designed  by  Robert  L.  Stevens, 
A.  D.  1830;  adopted  by  American  rail- 
roads. Shaded  section  shows  rail  as 
originally  designed,  1830.  Section  not 
shaded  shows  rail  as  rolled,  1631.  This 
rail  was  fastened  to  stone  blocks  with 
hook  headed  spikes;  at  the  joints  were 
Cases  a  COm-  iron  tongues  fastened  to  the  stem  of 
the  rail,  put  on  hot. 


198     FfXAXrrxG,  CONSTRUCTING,  MAINTAINING. 

Rectangular  spikes,  sometimes  called  "  dog 
spikes,"  having  a  projecting  head  which  extends 
about  half  an  inch  over  the  upper  surface  of  the 
foot  of  the  rail,  are  a  common  means  of  fastening 
the  flat  bottomed  rail  to  the  tie. 

Fang  bolts  are  said  to  be  the  most  satisfactory 
fastenings  employed  in  England.  The  bolts  are 
long  enough  to  pass  through  the  ties  and  have  a 
screw  on  the  end  which  fits  a  large  flat  nut.  A 
fang  or  short  spike  is  on  each  corner  of  the  nut. 
These  fangs  imbed  themselves  into  the  under  side 
of  the  tie  and  prevent  the  nut  from  turning,  the 
bolt  being  screwed  into  the  nut  by  turning  the 
head.  The  rail,  or  chair,  is  firmly  drawn  down 
on  to  the  tie  and  elasticity  of  the  wood  tightly 
holds  the  bolt.  A  disadvantage  in  connection 
with  the  use  of  the  fang  bolt  is  that  it  becomes 
set  by  rusting  and  cannot  be  turned  around.  The 
latter  is  frequently  necessary,  especially  in  hot 
climates  where  the  ties  become  shrunken  by  the 
hot  sun. 

Another  English  device  for  fastening  rails  is 
known  as  the  wedge  spike.  The  spike  is  split 
at  the  bottom  for  receiving  a  wedge,  which 
expands  the  two  halves  of  the  spike  and  makes 
it  assume  a  dovetail  shape.  A  hole  is  bored 
through  the  tie  and  an  iron  plate  used  to  hold 
up  the  wedge  while  the  split  spike  is  driven 
on  to  the  latter.  The  spike  cannot  be  removed 
from  the  tie  until  the  wedge  has  been  with- 
drawn, this  being  done  by  a  lever  made  for  that 
purpose. 


TRACK— CONSTRUCTION  AND  EVOLUTION.       199 

The  accompanying  illustrations  of  the  rail 
show,  incidentally,  the  evolution  of  its  acces- 
sories. Thus,  at  first  the  rail  was  laid  directly 
on  a  block  of  stone,  to  which  it  was  attached. 
Later  on  we  notice,  in  England,  the  introduction 
of  a  support  or  chair;  then  came  the  splice  bars, 
with  bolts,  wedges  and  other  devices,  such  as  the 
particular  form  required.  One  improvement  fol- 
lowed close  upon  another.  The  era  was  one  of 
invention.  Man's  ingenuity  was  stimulated  to 


Stone  Block,  Rail  and  Joint  Tongue  laid  on  Camden  &  Amboy  Railroad. 
A.  D.  1831. 

the  utmost.  In  this  way  the  appliances  of  the 
first-class  track  of  to-day  were  evolved.  Each 
year  adds  something  new  and  better,  but  sub- 
stantially the  first  twenty  years  of  active  railway 
operation  saw  the  track  fairly  perfected.  Dif- 
ferences have  existed  and  do  exist,  and  abvays 
will  exist,  it  is  probable,  as  to  what  particular  or 
technical  form  a  device  shall  take.  It  may  be 
a  form  which  is  the  best'  in  one  instance  may  not 
be  in  another.  In  some  cases,  ignorance  and 


200     FINANCING,  CONSTRUCTING,  MAINTAINING.   . 

prejudice  undoubtedly  intervene.  Thus,  while 
the  splice  bar  is  everywhere  recognized  as  indis- 
pensible,  the  particular  manner  of  applying  it 
differs.  How  far  these  differences  are  necessi- 
tated by  different  conditions  is  a  question  which 
I  shall  not  pretend  to  answer  here.  The  use  of 
different  patterns  involves,  it  is  apparent,  loss 
(temporary  at  least)  to  the  companies  that  do 
not  select  the  best.  Nevertheless,  railroads  are, 
on  the  whole,  benefited  by  the  experiments  they 
involve,  because  out  of  them  is  finally  ascertained 
what  is  best.  These  experiments  are  not  at  an 
end,  in  regard  to  any  particular  device  connected 
with  the  track,  but  will  continue  to  animate 
those  interested  in  railroads  as  long  as  they  are 
operated. 

The  double  headed  rail  was  designed  for  revers- 
ing when  the  top  became  worn,  instead  of  re- 
placing it  with  a  new  rail.  When  this  form  of 
rail  is  used,  a  chair  is  necessary  to  keep  the  rail 
from  cutting  into  the  tie,  and  also  to  protect  the 
lower  part  of  the  rail  from  becoming  worn.  It 
is  held  in  place  in  the  chair  by  a  wooden  block. 

The  bridge  rail  was  intended  for  use  with  the 
longitudinal  tie.  It  has  in  some  instances,  how- 
ever, been  laid  on  cross  ties,  although  not  per- 
fectly adapted  to  this  use. 

The  flat-bottomed  rail  (called  the  "  Vignoles  " 
rail  in  Europe,  the  "Stevens"  rail  in  America), 
does  not  require  the  use  of  a  chair,  except,  pos- 
sibly, at  switches,  as  it  is  wide  enough  at  the 
bottom  to  resist  the  pressure  of  the  wheels  upon 


TRACK— CONSTRUCTION  AND  EVOLUTION.       201 

it.    It  is  the  common  form  in  use  on  American 
railways. 

The  upper  surface  of  a  rail  should  correspond 
as  nearly  as  possible  to  the  shape  of  the  tread  of 
the  wheels  which  are  to  pass  over  it,  in  order  to 
afford  the  wheels  the  largest  possible  amount  of 
supporting  surface.  Rails  are  worn  much  more 
rapidly  by  the  sliding  of  wheels  upon  them  than 
by  their  rolling  over  them. 


Staple  iron  used  as  a  makeshift  for  a  Frog,  Camden  & 
Amboy  Kailroad,  A.  D.  1881. 

A  noticeable  thing  in  connection  with  railroads, 
and  one  that  has  excited  as  much  attention  as  the 
form  of  the  rail,  is  the  support  or  tie  on  which 
the  rail  rests.  Longitudinal  ties,  or  sleepers,  as 
they  are  called,  are  in  some  cases  used  in  England. 
These  pieces  of  timber  (about  twelve  inches  by 
six  inches)  give  the  rails  continuous  support  by 
lying  under  and  parallel  to  them.  The  timbers 
are  connected  by  cross  bars  notched  into  them 
and  fastened  with  iron  bolts.  When  soft  wood 
is  used,  a  thin  strip  of  hard  wood  is  laid  between 


202     FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  rail  and  the  tie  so  the  grain  of  the  wood  is  at 
right  angles  to  the  rail.  Longitudinal  sleepers 
permit  the  use  of  lighter  rails  than  when  cross 
ties  are  laid.  They  are  also  safer  in  the  event 
the  trucks  of  railway  vehicles  leave  the  rails,  as 
they  afford  a  comparatively  smooth  surface  for 
the  wheels  to  run  on,  while  i«  the  case  of  cross 
ties  the  wheels  bump  from  one  tie  to  another  in 
a  manner  which  is  disastrous  to  the  couplings, 
springs  and  other  portions  of  the  train.  The 
advantages  in  favor  of  longitudinal  over  cross 
ties,  however,  are  offset  by  numerous  disadvan- 
tages. Thus,  the  timber  required  for  the  former 
must  be  larger  and,  therefore,  more  expensive. 
When  a  longitudinal  tie  becomes  defective  it  can 
be  removed  and  replaced  only  by  taking  up  the 
rail  and,  as  a  result,  stopping  traffic  for  the  time 
required  for  this  work,  while  if  a  cross  tie  is  unfit 
for  further  service  it  may  be  replaced  without 
disturbing  the  rail  or  any  other  tie  and  without 
sensible  interruption  to  traffic. 

While  engineers  have,  in  the  main,  been  re- 
stricted to  a  wood  tie,  they  have  not  been  satis- 
fied with  it.  It  decays  too  quickly.  This 
discontent  early  found  expression  in  the  inven- 
tion of  metal  ties  of  different  forms.  Many  of 
these  I  illustrate  herein.  This  form  of  tie  is  per- 
fectly practicable,  and  in  many  cases,  more  eco- 
nomical to  use,  it  is  probable,  than  any  other; 
but  until  railway  managers  become  entirely 
familiar  with  its  merits,  it  will  receive  only 
cursory  notice.  Up  to  this  time,  the  first  outlay 


TRACK— CONSTRUCTION  AND  EVOLUTION.      203 

it  necessitates  has  been  thought  to  be  too  great 
for  many  companies. 

The  so-called  metal  pot  tie  is  sometimes  used 
on  European  railways.  It  is  made  of  cast  or 
wrought  iron,  dome-shaped.  The  chair  is  a  part 
of  the  tie  and  the  rail  is  fastened  to  the  chair 
with  a  key.  In  laying  this  form  of  tie,  the  ballast 


English  BMsh-belly  Rail,  New  Jersey  Railroad,  A.  D.  1832. 


is  made  into  little  piles  or  heaps  where  the  ties 
are  to  be  put  in  the  track.  The  bowl  of  the  tie 
is  placed  over  the  pile  and  packed  by  forcing  fine 
ballast  through  the  holes  in  the  upper  part  of  the 
bowl.  The  rails  are  kept  parallel  by  tie  rods  ex- 
tending crosswise,  which  are  attached  to  the  pot 
ties. 


204     FIXAXCIXG,  CONSTRUCTING,  MAINTAINING. 

The  forms  of  metal  ties  invented  are  exceed- 
ingly varied  and  will  repay  the  most  .careful 
investigation.  Experiments  in  this  direction  are, 
however,  not  at  an  end,  any  more  than  they  are 
in  connection  with  other  features  of  the  track. 
Indeed,  the  rail  itself,  upon  which  so  much 
thought  and  experimental  action  have  been  de- 
voted, and  which  is  apparently  so  perfect,  will 
take  on  still  other  and  better  forms  as  use  demon- 
strates its  present  imperfections.  It  is  notice- 


joint  Chair  and  Wedge,  Old  Portage  Railroad,  A.  D.  1832. 

able,  however,  that  very  early  in  the  operation  of 
railroads  the  rail  began  to  shape  itself  011  present 
lines,  and  this  not  without  due  thought  and  ex- 
periment, for  it  is  hardly  possible  to  conceive  of 
a  shape  the  rail  has  not  assumed  under  the  deft 
hands  of  different  engineers  and  manufacturers. 
Nothing  in  connection  with  the  evolution  of  rail- 
roads is  more  interesting  than  this  feature  of 
their  development,  but  while  almost  every  con- 
ceivable form  has  been  made  and  tried,  it  is 


TRA CK—  CONSTR UCTION  AND  E VOL  UTION.      205 

noticeable  that  only  those  have  survived  which 
conform  generally  to  the  present  pattern,  and  as 
I  have  copiously  illustrated  this  I  shall  not  at- 
tempt to  describe  it  further  here.  And  so  in 
regard  to  some  other  features  of  the  track:  they 
can  be  better  understood  by  carefully  studying 
the  cuts  illustrating  them  than  by  the  most 
lucid  explanations.  I,  therefore,  refer  the  reader, 
for  further  and  more  technical  information  in 
regard  to  the  track  and  its  evolution,  to  these 
illustrations. 


CHAPTER   VII. 

CONSTRUCTION,     MAINTENANCE     AND     CARE     OF     THE 
ROADWAY    AND   TRACK. 

[NOTE — An  effective  and  thorough  system  of  track  accounts 
is  necessary  to  a  proper  understanding  of  track  maintenance 
and  its  due  and  economical  enforcement.  Such  a  system  will 
be  found  in  the  book  "  Disbursements  of  Railways."] 

As  this  is  the  salient  feature  of  a  railway,  it 
naturally  excites  greater  interest  and  speculation 
among  managers  than  any  other  part  of  the 
property.  Upon  it  our  lives  and  the  safety  of  our 
property  depend.  Other  structures  connected 
with  a  railway  are  the  work  of  architects,  ma- 
chinists, plumbers,  carpenters  with  their  acces- 
sories; we  use  the  same  agents  in  building  and 
repairing  our  houses,  and  consequently  possess 
more  or  less  knowledge  of  their  methods.  The 
track  of  a  railway,  on  the  other  hand,  is  a  thing 
apart,  something  special  and  unknown. 

A  good  track  is  commonly  an  indication  of  a 
solvent  company,  a  wise  manager,  a  skillful  staff 
and  careful  and  trustworthy  employes.  Much 
might  be  written  about  it  of  a  theoretical 
nature.  The  subject  is  such  as  to  excite  the 
imagination.  I  shall,  however,  lay  before  my 
readers  only  that  which  is  of  practical  use.  I 
have  given  the  subject  much  thought,  but  feel  I 

(206) 


CONSTRUCTING  AND  MAINTAINING  TRACK.     207 

cannot  say  anything  so  pertinent  as  those  prac- 
tically familiar  with  the  subject.  I  beg  the 
reader's  indulgence,  therefore,  if  I  avail  myself 
largely  of  what  has  been  written  by  those  wise  in 
such  matters.* 

Let  us  take  up  the  subject  at  the  point  where 
the  roadbed  is  ready  for  laying  the  ties  and  rails. 
We  will  assume  that  the  contractors 
have  finished  the  work  of  grading; 
that  the  culverts  and  bridges  have 
been  constructed;  that  the  ties  have 
been  bought  and  are  piled  at  con- 
venient places  along  the  road;  that 
the  surfaces  of  the  ties  have  so  far 
as  possible  been  prepared  ready  for 
the  rail,  and  that  they  have  been 
seasoned  for  at  least  one  year;  that  Roiled  Ran,  oid 


the  timber  for  switches  is  conven-     o 

iently  placed  and  similarly  seasoned, 

and  that  the  rails  and  splices  are  ready  for  de- 

livery as  required.!   At  this  point  there  will,  it  is 

probable,  be  several  places  at  which  it  may  be 

possible  to  commence  laying  track.      The  first 

thing  to  be  done  is  to  organize  one  or  more  gangs 

*  The  authorities  I  particularly  refer  to  are  Mr.  Andrew  Mor- 
rison and  Mr.  H.  W.  Keed.  The  free  use  that  I  make  of  the 
geimis  and  experience  of  others  in  this  respect  involves,  as  the 
reader  will  notice,  more  or  less  repetition.  It  will  be,  however, 
more  apparent  than  real.  In  any  event,  the  sidelight  thrown 
upon  the  subject  will  be  found  to  warrant  it.  This  is  true,  not 
only  here,  but  elsewhere  throughout  the  work  in  connection 
with  the  subject  about  which  I  write.  M.  M.  K. 

fSee  Appendix  F  for  approximate  quantities  of  material 
required  to  lay  one  mile  of  track  on  the  basis  named  therein. 


208     FINANCING,  CONSTRUCTING,  MAINTAINING. 

of  tracklayers;  also  a  construction  train  for  each 
gang,  and  surfacers  for  each  gang.  It  will  usually 
be  necessary  to  prepare  the  roadbed  for  the  track 
before  putting  these  gangs  to  work.  This  pre- 
paratory work  is  commonly  known  as — 

TRIMMING. — This  is  work  which  contractors  are  very 
likely  to  do  imperfectly  or  neglect  entirely.  Thus  a  most 
important  part  of  their  work  is  left  for  the  track  depart- 
ment to  do,  if  a  company  is  desirous  of  having  a  good 
track  so  as  to  save  expense  in  later  years.  The  roadbed 
in  cuts  should  be  prepared  with  great  care,  especially 


Stone  Stringer  and  Strap  Rail,  Baltimore  &  Ohio  Railroad,  A.  D.,  1833.    This 
was  a  favorite  American  device. 

in  regard  to  drainage.  The  center  of  the  bed  should  be 
eight  inches  higher  than  the  ditches  for  single  track,  and 
eleven  inches  higher  for  double  track.  The  roadbed  for 
double  track  should  have  its  summit  of  drainage  at  the 
center  of  each  track.  This  provides  efficient  drainage 
between  these  points,  but  not  for  the  space  between  the 
track  centers.  This  is  why  longitudinal  drains  with 
cross  branches  to  the  ditches  are  often  necessary  to 
drain  the  inner  two  halves  of  the  track.  The  roadbed 
for  double  track  should  slope  from  the  summit  of  drain- 
age, at  the  rate  of  one-half  inch  to  the  foot,  until  it 


CONSTRUCTING  AND  MAINTAINING  TRACK.     209 

reaches  the  extreme  outer  ends  of  the  ties,  from  which 
it  should  slope  to  form  the  ditch,  six  inches  below  this 
point ;  the  bottom  of  the  ditch  should  be  six  and  a  half 
or  seven  feet  distant  from  the  near  rail  of  each  track. 
Single  track  should  be  in  proportion.  All  holes  should 
be  tilled  solid,  uniform  with  the  surface  of  the  bed. 
When  this  is  completed  gangs  can  be  put  to  work. 

CONSTRUCTION  TRAIN. — The  number  of  construction 
trainmen  and  foremen  will  depend  upon  circumstances. 
It  is  their  duty  to  load  and  unload  material.  Work  can 
be  economized  by  using  as  few  engines  as  possible.  One 
engine  can  be  made  to  do  the  wrork  of  two  by  placing  the 
cars  for  loading  and  unloading  material  while  it  attends 
to  other  work.  If,  however,  the  haul  is  too  great  to  admit 
of  this,  an  extra  engine  is  necessary. 

TRACK  LAYING. — A  track  laying  gang  should  consist 
of  as  many  men  as  can  be  worked  conveniently.  Small 
gangs  can  be  worked  more  economically  than  large 
ones.  The  best  men  should  be  kept  at  the  front.  If 
one  man  in  each  sub-gang  is  paid  five  or  ten  cents  a 
day  more  than  the  others,  he  will  encourage  his  fellows 
to  greater  exertion  than  a  foreman  can.  The  foreman 
of  a  track  laying  gang  should  be  smart  and  ingenious. 
The  following  is  about  the  force  required  to  lay  the 
track  of  a  new  road  under  normal  conditions  :  nine  men 
to  load  construction  material  on  the  truck,  eight  men 
to  unload  the  truck,  one  man  with  a  horse  to  haul  mate- 
rial, four  men  to  lay  out  rope  for  lining  and  spacing 
ties,  six  men  to  put  on  splices,  and  a  proper  number  of 
spikers.  A  track  laying  gang  will  lay  on  an  average 
one  mile  in  two  days.  Sometimes  less,  sometimes  more. 
Portable  turntables  are  used  for  the  convenience  of 
loaders  and  unloaders.  When  a  truck  is  unloaded,  and 
the  horse  has  hauled  back  the  empty  truck,  the  driver 
will  put  the  turntable  on  the  track  and  haul  the  empty 
truck  off  on  two  cross  ties ;  he  will  then  hitch  on  to  the 
loaded  truck  and  haul  ahead  to  be  in  turn  unloaded ; 
the  loaders  will  then  run  the  returned  empty  truck 
back  to  its  position  for  reloading.  Should  the  un- 
loaders have  their  truck  unloaded  before  the  driver 

14    Vol.  3 


210     FINANCING,  CONSTRUCTING,  MAINTAINING. 

arrives  with  the  next  load,  they  will  put  the  turn- 
table on  the  track  and  run  it  off  when  the  next 
loaded  truck  is  hauled  to  position.  Should  the  driver 
reach  the  unloaders  before  their  truck  is  empty,  it  will 
be  his  duty  to  place  the  turntable.  The  object  to  be 
kept  in  view  is  the  keeping  of  unloaders  constantly  sup- 
plied with  material.  An  ordinary  truck  load  is  six  rails 
and  sufficient  cross  ties  to  lay  that  number  of  rails, 
with  a  supply  of  splices,  bolts,  nut  locks  and  spikes. 
It  is  better  and  cheaper  to  lay  ties  complete  than  to  lay 
them  for  joints  and  quarters  only,  allowing  the  inter- 
mediate ties  to  be  unloaded  afterward  and  pulled  beneath 
the  rails.  It  requires  the  track  to  be  raised  in  order  to 
accomplish  this,  and  it  is  injurious  to  the  rails  and 
roadbed  to  run  a  train  on  such  a  track.  As  fast  as  the 


Frog,  Old  Portage  Railroad,  A.  D.  1835. 

ties  are  laid  sufficient  for  each  half  rail  length,  the  rail 
is  laid  down,  partly  spliced  and  spiked  and  the  truck 
then  moved  ahead.  The  splicers  and  spikers  do  the 
principal  part  of  their  work  behind  the  truck.  The 
spacers  will  locate  the  places  for  the  joint  ties,  using  a 
pole  of  the  proper  length,  and  laying  the  rails  with 
broken  joint.  On  curves,  the  rope  is  first  laid  in  posi- 
tion the  same  distance  from  engineers'  stakes  as  on 
tangents  ;  then  put  to  curve  by  measuring  off  the  middle 
and  intermediate  ordinates  from  the  straight  line  first 
given  by  the  rope.  The  rope  is  placed  on  the  proper 
side  for  lining  ties,  namely,  on  tangents  of  double  track, 
the  right-hand  side  in  the  direction  the  trains  run ;  and 
on  the  inner  side  of  curves.  The  splicers  will  space  the 
rails  by  tightening  up  the  rear  bolt,  and  then  inserting 


CONSTRUCTING  AND  MAINTAINING  TRACK.     21 1 

the  round  end  of  their  wrench  in  the  forward  hole  of  the 
splice  and  rail,  which  will  give  sufficient  leverage  to 
move  the  rail.  They  should  be  provided  with  a  suitable 
rail  spacer.  When  they  have  adjusted  the  joint  and 
bolted  it  up,  the  spiking  may  be  done. 

GAUGING  AND  SPIKING. — Joints  and  centers  should  be 
gauged  and  spiked  first,  so  as  to  bring  the  rails  to  their 
proper  position  on  the  ties.  This  facilitates  intermedi- 
ate spiking.  Each  tie  should  be  gauged  as  it  is  spiked. 
Curves  of  three  degrees  and  over  should  have  their 
gauge  widened,  so  that  the  longest  rigid  wheel  based 
engine  can  pass  around  the  curve  without  crowding  or 
spreading  the  track ;  this  will  vary  from  one-eighth  of 
an  inch  on  a  three- degree  curve  to  one  and  one-fourth 
inches  on  a  twenty- degree  curve.  The  widening  of  the 
gauge  should  begin  back  on  the  tangent  and  be  full 
gauge  at  the  beginning  of  the  curve  and  continue  all  the 
way  around  to  the  beginning  of  the  tangent,  being  then 
run  off  on  the  tangent  as  before.  Slot  holes  in  flanges 
of  splices  should  be  spiked  to  prevent  creeping  of  track. 
All  spikes  should  be  driven  plumb  and  snug  to  the  rail ; 
they  should  not  be  struck  laterally,  as  they  are  thereby 
bent  and  consequently  fit  improperly  against  the  rail. 
Striking  the  rail  should  be  prohibited ;  it  is  the  result  of 
carelessness  and  is  injurious  to  the  rail.  A  fracture  on 
the  base  of  a  rail,  caused  by  striking,  is  liable  to  result 
in  a  broken  rail.  '  This  is  due  to  the  fact  that  in  the 
manufacture  of  rails  the  base  cools  faster  than  the  head, 
and  as  the  head  contracts  in  cooling  the  base  is  forced 
to  form  the  outer  ring  of  a  circle ;  to  overcome  this 
tendency  it  is  curved  in  the  opposite  direction  when  red 
hot — hence  the  strain  on  the  base  when  cooled. 

LAYING  TIES. — Those  who  unload  the  ties  should 
select  those  for  joints.  These  should  be  as  near  a  ten- 
inch  face  as  possible,  and  not  over  that  width.  No  in- 
termediate tie  should  have  a  face  of  less  than  seven 
inches.  Ties  should  be  spaced  with  a  maximum  distance 
of  fourteen  inches  and  a  minimum  distance  of  twelve 
inches  between  them.  The  butt  end  of  the  tie  should  be 
placed  on  the  inside  of  curves. 


212     FINANCING,  CONSTRUCTING,  MAINTAINING. 

SPECIFICATIONS  FOR  CROSS  TIES. — Hewed  ties  require 
to  be  adzed  level  for  the  rails,  and  scribed  for  the  outer 
side  of  rail  bases.  This  facilitates  track  laying.  The 
end  which  is  to  be  placed  on  the  lining  side  of  the 
track  should  be  indicated  by  adzing  off  a  small  corner, 
care  being  taken  to  select  the  butt  end  of  the  ties  for 
the  lining  of  curves  and  to 
pile  them  separately.  Ties 
should  be  of  young  and 
thrifty  timber  (usually  the 
second  growth)  which  pos- 
sesses the  greatest  tough- 
ness and  elasticity.  Trees 
should  be  felled  during  the 
winter  months,  when  the 

Cross  Tie,  split  quarter  log.  Sap    is    down.       Ties    tllUS 

made  are  less  liable  to  im- 
mediate attacks  of  fungi.  The  bark  should  be  removed 
from  all  such  trees  to  facilitate  the  seasoning  of  the 
wood  and  prevent  the  bad  effect  of  bark  upon  ties  when 
in  the  track. 

TIES  FOR  TRACK. — Ties  for  main  track  curves  should 
be  of  the  highest  grade.  Those  for  tangents  may  be  of 
the  second  order.  No  tie  with  a  face  less  than  seven 
inches,  or  more  than  ten,  should  be  used  in  the  main 
track.  Ties  should  be  of  a  uniform  thickness  of  seven 
inches.  They  should  approximate  in  length  double  the 
gauge,  so  that  the  rail  may  be  equally  distant  from  the 
end  and  center  of  the  tie.  This  will,  in  a  measure,  ob- 
viate the  track  becoming  center  bound,  and  secure 
greater  bearing  surface  on  the  roadbed.  Ties  should 
be  spaced  so  that  the  maximum  distance  from  face  to 
face  will  be  fourteen  and  the  minimum  tw_elve  inches. 
The  object  sought  is  to  distribute  the  weight  of  trains 
uniformly  on  the  roadbed.  Ties  which  are  furthest 
apart  have  the  greatest  weight  to  sustain,  and  will  be 
the  first  to  show  a  weak  point  in  the  surface.  Second- 
class  or  "cull"  ties  may  be  used  in  sidings  and  yard 
tracks.  Hard  wood  should  be  used  on  curves.  Soft 
wood  may  be  used  on  tangents.  Ties  when  received 


CONSTRUCTING  AND  MAINTAINING   TRACK.     213 

should  be  piled  so  as  to  allow  free  circulation  of  air 
around  each  tie  and  shed  as  much  water  as  possible. 
Two  old  ties  should  be  used  as  a  foundation  for  each 
pile.  Ties  that  meet  the  requirements  of  main  track 
use  are  white  or  rock  oak,  chestnut  and  yellow  pine. 
The  oak  ties  should  be  used  exclusively  on  curves  and 
the  others  on  tangents  only.  It  is  better,  however,  to 
use  oak  in  tangents,  instead  of  soft  wood  ties,  as  the 
spike  has  greater  adhesion  in  an  oak  tie.  Chestnut  or 
yellow  pine  ties  are  altogether  too  soft  to  use  on  curves. 

TIE  PLATES. — By  using  tie  plates  on  chestnut  and  yel- 
low pine  ties,  they  can  be  made  to  take  the  place  of  oak 
ties  on  curves.     The 
plates  must  be  of  suf- 
licient  strength  to 
overcome  the  turning 
up  tendency  they  pos- 
sess.     They  increase 
the  lateral  resistance 
of  the  spike.     It  is  a  Cross  Tie  6plit 

question  whether  it 
will  pay  to  use  tie  plates  on  tangents,  as  the  tendency 
of  the  rails  to  cut  into  the  ties  is  slight  in  comparison 
with  that  on  curves.  As  soon  as  a  low  place  is  found 
on  a  curve,  it  should  be  tamped  to  surface ;  such  places 
on  tangents  may  usually  remain  till  it  is  convenient  to 
repair  them.  Tie  plates  used  on  tangents  are  liable  to 
rattle  and  are  in  the  way  when  blocking  or  shimming  is 
to  be  done.  Track  on  tangents  is  apt  to  heave  more 
than  on  curves,  because  the  latter  are  dug  out  and 
usually  well  drained  and  ballasted,  whereas  on  tangents 
this  work  is  not  so  necessary  for  safe  and  fast  running. 

DAMAGE  TO  CROSS  TIES  BY  SPIKING. — Experiments 
show  that  driving  the  spike,  without  previously  boring 
for  the  same,  lessens  the  adhesion  of  the  spike  and  in- 
jures the  wood.  When  a  spike  is  so  driven  in  an  oak 
tie,  the  woody  fibers  are  driven  downward  with  the 
spike,  extending  around  the  same  for  about  half  an 
inch,  and  inclining,  on  an  average,  at  an  angle  of  about 
forty-five  degrees.  By  removing  the  spike  and  splitting 


214     FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  tie  through  the  spike  hole,  it  will  be  found  that  the 
fibers  have  sprung  back  until  the  hole  is  nearly  half 
closed ;  they  will  also  be  found  to  be  perfectly  pliable, 

having  lost  almost  all 
power  of  adhesion ;  they 
are  thus  in  good  condi- 
tion to  receive  moisture, 
which  engenders  decay. 
To  obviate  this,  a  hole, 
one- sixteenth  of  an  inch 
less  in  diameter  than  the 
thickness  of  the  spike, 
""** "I  should  be  bored  the  full 

CrosB  Tie,  while  log,  hewn  both  sides.       depth  that  the  spike  will 

be  driven  in  the  wood. 
This  prevents  injury  to 

the  fibers  and  increases  adhesion,  which  latter  is  the 
principal  point  gained  by  boring  holes.  A  spike  with  a 
diamond  point  will  give  better  satisfaction  than  the  or- 
dinary chisel  pointed  spike.  The  ordinary  spike,  on 
account  of  its  sharp  edges,  has  a  tendency  to  drift  from 
the  direction  of  the  hole.  The  diamond  pointed  spike 
will  go  straight  home.  The  spike  should  have  a  short 
point  commencing  half  an  inch  from  the  end  and  taper- 
ing uniformly  on  its  four  sides.  The  holes  should  be 
made  in  ties  before  they  are  put  in  track. 

INSPECTING  BAILS. — Bails  should  be  inspected  with  a 
view  to  their  composition,  length,  flaws,  line  and  sur- 
face. Each  end  of  the  rail  should  be  filed  underneath 
the  head  and  top  base  to  remove  projecting  sharp  edges 
caused  by  sawing,  so  as  to  allow  the  splices  to  fit  snugly. 

CURVING  BAILS. — Bails  for  curves  of  over  five  degrees 
should  be  curved  with  a  rail  bender,  but  an  allowance 
of  curvature  equal  to  that  due  to  a  curve  of  five  degrees 
should  be  made  to  allow  the  lining  of  track  to  spring 
the  rails  that  amount.  This  amount  of  spring  in  the 
rails  is  not  injurious  and  will  take  out  kinks  made  in 
curving.  A  kinked  rail  in  a  curve  soon  forces  the  track 
into  the  natural  position  of  the  rail,  resulting  in  a  bad 
riding  track  and  continual  expense,  as  rails  frequently 


CONSTRUCTING  AND  MAINTAINING   TRACK.      215 

require  to  be  removed  from  this  cause.  The  rail  bender, 
while  the  best  means  of  curving  rails,  is  imperfect, 
because  the  curving  is  a  series  of  small  bends,  while  it 
should  be  a  perfect  curve.  The  simplest  manner  of 
testing  the  curving  of  rails  is  to  stretch  a  string  from 
one  end  to  the  other  of  the  rail  and  mark  the  rail  off 
into  quarters ;  from  the  string  to  the  rail  at  the  center 
mark  will  be  the  middle  ordinate  and  at  the  quarter 
marks  the  intermediate  ordinates,  these  ordinates  being 
calculated  according  to  the  degree  of  curve.* 

SPLICES. — Splices  should  be  carefully  inspected  as  to 
quality  of  material  and  make,  care  being  taken  to  reject 
all  that  are  bent  or  twisted  in  any  manner.  Only 
straight  splices  should  be  used.  A  splice  bent  laterally 
will  prevent  the  track  from  lining,  and  bent  vertically 
will  prevent  the  joint  from  surfacing  and  be  liable  to 
break.  Turned  up  corners  on  the  ends  of  splice  bear- 
ings should  be  filed  level  with  the  surface. 

SUPPORTED  AND  SUSPENDED  JOINTS. — This  subject,  for 
obvious  reasons,  cannot  be  given  here  the  consideration 
it  deserves.  The  miter  j  ointed  rail,  where  used,  has  gone 
far  to  settle  the  controversy.  The  square  jointed  rail 
leaves  more  or  less  of  an  opening  for  wheels  to  fall  into. 
In  time  this  depression  beeomes  greater  by  the  rail  ends 
flattening  and  the  joints  becoming  low,  so  that  the  break 
in  the  line  of  rail  offers  an  opportunity  for  each  wheel  to 
strike  a  blow  proportionate  to  the  opening  weight  exerted 
and  speed  of  travel.  The  miter  jointed  rail  practi- 
cally overcomes  this  blow.  With  its  use  the  splice  acts 
as  its  name  suggests  and  makes  the  joint  as  strong  as 
the  unbroken  part  of  the  rail,  while  furnishing  slot  holes 
to  enable  the  track  to  be  spiked  without  injuring  the  base 
of  the  rail  by  punching  slot  holes.  The  splice  should 
have  sufficient  bolts  to  overcome  the  tendency  of  rails 
to  pass  each  other  and  form  a  lip.  It  is  claimed  by 

*  One  of  the  simplest  methods  of  calculating  the  middle 
ordinate  is  to  square  half  the  length  of  the  rail  and  divide  the 
result  by  twice  the  radius  of  the  curve,  thus:  Mid.  ord.  'M^)- 
The  intermediate  ordinate  is  three-fourths  of  the  middle  ordi- 
uate. 


216     FINANCING,  CONSTRUCTING,  MAINTAINING. 


some  that  the  supported  splice  joint  has  all  these  require- 
ments and,  in  preference  to  the  suspended  joint,  allows 
of  an  additional  tie  under  the  rail  ends  or  center  of 
splice,  thereby  securing  the  aid  of  this  tie  to  act  in 
resistance  to  the  rail's  running,  as  well  as  furnishing 
greater  bearing  surface  at  this  weak  point  of  the  rail. 
But  there  are  objections  to  these  points,  namely,  the 
punching  of  slot  holes  so  near  the  center  of  the  splice 
renders  the  splice  liable  to  break  at  its  weakest  point, 
and,  in  the  case  of  square  cut  rails,  the  placing  of  a  tie 
underneath  the  rail  ends  prevents,  to  a  certain  extent, 
the  free,  elastic  action  of  the  splice,  thereby  increasing 
the  blow  and  weight  to  be  sustained  at  that  point. 
Further,  this  center  tie  cannot  remain  at  good  surface, 
as  it  receives  the  blows  exerted  by  the  wheels  directly 
and  must  necessarily  soon  get  low.  When  the  tie  recedes 
below  the  surface,  it  ceases  to  be  a  support  and  acts  as  a 
suspended  joint.  The  same  is  true  of  the  miter  jointed 
rail,  though  to  a  less  extent. 

KAISING  TRACK. — The  gang  for  surfacing  will  vary  in 
number  according  to  the  kind  of  ballast  used.     Track 

should  be  raised  to 
grade  in  two  lifts.  In 
surfacing  track,  both 
rails  should  be  raised 
and  .tamped  at  the 
same  time  to  obviate 
unevenness. 

TAMPING  TRACK 
WITH  BARS.  —  This 
work  should  be  done 
several  days  after 
surfacing,  so  as  to 
allow  the  track  to  be 
partially  consoli- 
dated. When  square 
cut  rails  are  used, 
the  inside  and  out- 
side of  the  ioint 

Standard  Track  of  Camden  &  Amboy  Railroad,      ,•  J 

A.  D.  1837,  tl€ 


CONSTRUCTING  AND  MAINTAINING  TRACK.     217 

tamped  and  surfaced  slightly  high ;  the  outside  of  the 
intermediate  ties  should  be  well  tamped  and  the  inside 
lightly  a  distance  of  twelve  inches  from  the  rail.  Ballast 
should  be  simply  packed  around  the  center  of  ties  so  as 
to  prevent  the  track  becoming  center  bound. 

CENTER  BOUND  TRACK. — This  is  due  to  settling  of  the 
ends  of  ties  caused  by  their  elasticity  and  the  unevenly 
distributed  weight  passing  over  them;  this  weight  is 
more  on  the  ends  of  the  ties  than  the  centers.  The  track 
thus  becomes  more  solid  at  the  center  than  at  the  ends. 
Center  bound  track  shows  itself  by  the  oozing  of  mud  or 
water  from  the  ends  of  the  ties  in  wet  weather  and  the 
rising  of  dust  in  dry  weather.  Sometimes  a  track 
becomes  so  center  bound  that  the  ends  of  the  ties  will 
depress  from  two  to  three  inches.  This  is  a  drag  on 
motive  power,  destructive  to  machinery  and  expensive 
in  every  way.  Each  depression  forms  a  grade  to  be 
overcome.  Time  spent  in  repairing  such  a  track  is  use- 
less. It  must  be  raised  from  its  old  bed. 

LINING  TRACK. — This  is  very  important.  All  curves 
should  have  spiral  ends  to  allow  trains  to  enter  and 
leave  them  gradually,  and  also  allow  a  proper  elevation, 
since  the  elevation  should  increase  with  the  spiral. 
Curves  on  new  roads  should  be  laid  with  spiral  ends, 
because  it  entails  great  expense  to  relieve  an  old  track 
in  this  manner,  requiring  the  purchase  of  additional 
right  of  way,  perfecting  cuts  and  fills  and  the  building 
of  new  bridges,  etc.  The  great  defect  of  the  trackman 
in  correcting  engineer's  stakes  by  throwing  in  the  points 
of  curves  is,  that  while  he  lightens  the  curve  points  he 
increases  the  curvature  further  in  on  the  curve,  thereby 
transferring  the  swing  of  the  cars  toward  the  center 
of  the  curve ;  but  as  the  greatest  centrifugal  force  to 
overcome  is  at  the  point  of  curve,  he  has  removed  the 
objectionable  lining  to  a  point  requiring  less  lateral 
resistance,  which  is,  however,  a  move  in  the  right  direc- 
tion. A  good  practice  in  correcting  engineer's  stakes 
when  dealing  with  old  track,  or  even  new  track,  is  to 
examine  the  nearer  obstructions  along  the  inside  of  the 
curve  and  determine  how  far  it  can  be  thrown  toward 


2 1 8     FINANCING,  CONS  TR  UC  TING,  MA  IN  TAIN  ING . 

its  center  without  interference  with  such  obstructions ; 
then  set  stakes — or  measure  the  required  distance  from 
the  engineer's  stakes  (if  such  have  been  given) — the  dis- 
tance it  can  be  moved ;  throw  the  track  to  these  stakes 
all  around  the  curve,  except  the  last  hundred  feet  or  so 
(according  to  the  distance  thrown),  and  line  with  the 
eye  the  ends  of  the  curve  so  as  to  run  out  on  the  tan- 
gent about  the  same  distance  from  the  point  of  curve  as 
the  point  first  started  to  line  from  is  ahead  of  the  orig- 
inal point  of  curve.  This  is  simply  throwing  the  curve 
points  put  instead  of  in,  thereby  lightening  instead  of 
increasing  them.  The  lining  up  of  a  curve  should  be 
done  by  sighting  on  the  outer  rail ;  better  work  can  be 
done  by  bending  down  to  bring  the  eye  near  to  the  rail 
than  by  standing.  This  is  more  necessary  on  curves 
than  on  tangents,  because  it  is  necessary  to  be  nearer 
the  bars  on  the  former  than  on  the  latter.  Curves  on 
old  tracks  should  be  lined  with  a  sixty-two  feet  line, 
first  obtaining  the  average  ordinate  by  trying  each  joint 
around  the  curve,  then  going  around  again  and  taking 
out  all  its  irregularities ;  this  is  the  only  true  and  easy 
manner  of  testing  curves,  as  the  eye  is  deceiving  in 
lining  as  well  as  in  leveling.  A  sixty-two  feet  line 
should  be  used,  because  with  a  curve  of  that  length 
each  inch  of  the  middle  ordinate  represents  that  num- 
be  of  degrees  of  the  curve.  Stakes  should  be  set  for 
all  tangents,  as  it  is  impossible  to  get  them  correct 
otherwise. 

ELEVATION  OF  CUKVES. — The  outer  rail  of  curves  should 
be  elevated  according  to  the  degree  of  curve  and  the 
speed  of  traffic,  taking  the  slow  trains,  however,  also 
into  consideration,  as  well  as  the  grade  of  track,  as 
grade  and  curvature  usually  determine  speed.  The 
outer  rail  at  point  of  curves  should  have  the  full  eleva- 
tion carried  back  on  the  tangents  at  about  the  rate  of 
fifty  feet  per  degree  of  curve  (if  the  tangent  is  sufficiently 
long  for  the  purpose),  and  should  decrease  at  this  rate 
for  curves  beyond  six  degrees.  It  often  occurs  that  the 
engineer  has  left  tangents  of  one  hundred  or  one  hundred 
and  fifty  feet  between  the  points  .of  curves  as  a  matt 


CONSTRUCTING  AND  MAINTAINING  TRACK.     219 

of  economy  in  construction,  and  as  for  a  length  of  a  pas- 
senger car  at  least  the  track  should  be  level  between  the 
two  elevations  of  outer  rails,  the  trackman  discovers  that 
he  will  require  to  make  the  elevation  very  suddenly,  and 
can  only  give  half  the  required  elevation  at  the  point  of 
curve  instead  of  full — shortening  the  run  off  on  the  tan- 
gent in  consequence.  Should  such  a  case  occur  on  double 
track,  the  elevation  on  the  run  off  end  should  be  reduced 
considerably  further  back  on  the  curve,  thereby  termi- 
nating its  elevation  nearer  to  its  point ;  this  will  allow  more 
room  for  the  elevation  to  enter  the  next  curve  on  the  run 
on  end,  which  is  vastly  more  important.  Should  the  two 


Track  of  Camden  <fe  Amboy  Railroad.    Rails  laid  on  piling  through  marshes, 
A.  D.  1837. 


curves  be  in  the  same  direction,  it  is  good  practice  to 
carry  a  certain  amount  of  the  elevation  throughout  the 
entire  tangent  intervening,  as  in  such  case  it  will  not  be 
necessary  to  leave  any  level  space  on  the  bame  for  the 
cars  to  partially  gain  their  equilibrium.  No  fixed  pro- 
portion for  the  elevation  of  curves  can  be  given,  as  the 
lighter  curves  require  much  more  elevation  per  degree 
of  curvature  than  the  heavier  curves  without  detriment 
to  slow  trains.  The  elevation  for  light  curves  can  be 
calculated  so  that  the  fast  trains  will  have  their  centrif- 
ugal force  equalized,  but  nothing  more.  The  elevation 
on  heavy  curves  should  be  such  that  the  outer  rail  will 
^ot  require  bracing  to  prevent  its  spreading;  the  inner 


220     FINANCING,  CONSTRUCTING,  MAINTAINING. 

rail,  in  lieu  thereof,  should  be  braced  to  prevent  its 
spreading  and  turning.  There  should,  however,  be  a 
brace  put  on  the  outer  rail  opposite  the  inside  braces  to 
prevent  the  tie  pulling  through,  as  the  spike  will  be 
insufficient  to  prevent  it  from  doing  so.  A  good  manner 
of  determining  the  proper  elevation  for  fast  trains,  and 
what  will  be  safe  for  slow  trains,  is  when  the  passenger 
car  will  ride  perfectly  level ;  should  the  outer  side  ride 
above  this  level,  the  elevation  is  too  great ;  if  below  this 
level,  it  is  too  small. 


Stevens'  Rail  supported  by  Cast-Iron  Chair,  A.  D.  1837. 

BROKEN  vs.  EVEN  JOINTS. — Broken  joints  are  the  cus- 
tom upon  some  of  our  best  roads  having  tracks  ballasted 
with  broken  stone,  gravel,  slag  and  anthracite  engine 
cinder.  Even  joints  are  the  custom  on  some  roads 
where  the  different  kinds  of  material  the  road  passes 
through  govern  the  kind  and  quantity  of  ballast.  Hence 
roads  having  poor  ballast  are  laid  with  the  joints 
even,  and  those  having  good  ballast  are  laid  with  the 
joints  broken.  It  is  self-evident  that  the  softer  the 
ballast  the  quicker  the  joints  will  become  depressed, 
and  the  opposite  is  true  the  harder  the  material.  We 
might,  therefore,  assume  that  low  joints  are  in  propor- 
tion to  the  quality  of  the  ballast,  other  things  being 
equal.  When  a  wagon  crosses  a  ditch  at  right  angles, 
so  that  each  pair  of  wheels  will  descend  at  the  same 


CONSTRUCTING  AND  MAINTAINING  TRACK.     221 

time,  the  jar  is  lighter  than  if  the  wagon  crosses  so  that 
one  wheel  descends  before  the  other.  As  a  wagon  goes 
along  an  ordinary  road  with  slight  depressions,  the  jars 
are  so  slight  that  they  are,  practically,  of  no  conse- 
quence. This  is  true  of  rolling  stock  on  the  track. 
Broken  joints  are  less  likely  to  depress,  since  the  bal- 
last is  superior,  the  depressions  not  being  of  such 
consequence  as  to  require  special  adjustment,  whereas 
the  opposite  is  true  of  even  joints.  Even  joints  would 
answer  the  same  purpose  on  good  ballast,  if  it  were 
possible  to  lay  them  perfectly  even,  which  it  is  not. 
Again,  on  curves  it  is  out  of  the  question  to  have  even 
joints,  as  the  outer  rail  is  continually  falling  behind  the 
inner  rail.  Therefore,  since  even  jointed  rails  are 
practically  impossible,  it  is  preferable  to  have  the  joints 
in  one  rail  come  as  nearly  opposite  the  center  of  the 
other  as  possible. 

BALLAST. — Ballast  usually  consists  of  broken  stone, 
slag,  gravel  or  anthracite  engine  cinder.  Each  has  its 
peculiar  qualites.  The  extremes  are  broken  stone  and 
cinder ;  the  mean,  slag  and  gravel. 

Broken  stone  is  superior  to  any  other  ballast  for 
cleanness,  durability  and  absence  from  dust ;  for  drain- 
age and  distributing  the  weight  over  the  entire  roadbed ; 
also  for  use  on  grades  to  prevent  the  track  from  creeping. 
It  should  be  placed  twelve  inches  deep  below  the  bottom 
of  the  ties  and  well  filled  in  between  them.  It  is,  how- 
ever, the  most  expensive  ballast  to  prepare  and  also  to 
deal  with  in  the  track.  Section  men  will  perform  twice 
as  much  work  in  cinder  ballast  as  in  stone.  With  stone 
ballast  it  is  difficult  to  obtain  a  good  surface.  It  is  not 
the  best  preventive  of  track  heaving  from  frost.  Where 
the  roadbed  is  of  a  muddy  nature  the  soil  will  ooze  up 
through  the  stone,  unless  the  ballast  is  deepened  to  pre- 
vent it.  It  is  also  destructive  to  soft  wood  ties,  their 
lower  corners  being  rounded  by  the  sharp  edges  of  the 
stone  when  tamping,  and  the  tie  greatly  damaged  by  the 
stones  cutting  into  the  wood. 

Slag  is  a  good  ballast.  When  the  rougher  slag  is 
selected  for  ballasting  underneath  the  ties,  and  the  finer 


222     FINANCING,  CONSTRUCTING,  MAINTAINING. 

from  that  point  up  to  the  surface,  it  may  be  said  to 
possess  all  the  good  qualities  of  broken  stone  and  cinder, 
excepting  the  lasting  qualities  of  the  former. 

Gravel  is  a  good  ballast.  It  should  be  carefully 
selected  and  the  larger  stones  removed.  It  should  be 
clean  and  clear  of  loam.  It  may  be  classed  as  a  fourth 
class  ballast.  It  has  good  drainage  qualities  and  pre- 
vents the  heaving  of  the  track  from  frost,  though  to  a 
less  extent  than  slag  or  cinder.  An  objection  to  gravel 
ballast  is  the  roundness  of  the  stones  composing  it, 
which  is  the  opposite  of  what  stone  for  ballast  should  be. 
It  is,  therefore,  of  little  value  for  holding  track  on 
grades.  It  also  shakes  from  the  ties  from  vibration 
caused  by  traffic  and  is,  therefore,  of  little  value  for  dis- 
tributing weight. 

Anthracite  cinder  is  the  best  ballast  to  prevent 
heaving.  It  can  be  worked  more  cheaply  than  any 
other  and  the  finest  surface  and  line  can  be  obtained 
with  it ;  it,  consequently,  makes  the  easiest  and  smooth- 
est riding  track.  It  is  more  elastic  than  any  other 
ballast,  and,  when  new,  adheres  well  to  the  ties.  It 
must,  however,  be  renewed  from  time  to  time,  as  it 
works  fine  and  makes  dust.  This  feature  obliterates  its 
fine  qualities.  However,  it  may  be  remedied  by  having 
it  watered  when  first  laid,  after  which  it  will  give  little 
trouble. 

STREET  CROSSINGS.— One  of  the  best  methods  of  pre- 
paring a  street  crossing  is  to  place  a  guard  rail  on  the 
inside  of  each  rail,  so  that  their  two  bases  will  butt 
against  each  other.  The  guard  rail  should  be  one- 
fourth  of  an  inch  lower  than  the  main  rail.  The  ends 
of  the  guard  rails  on  each  side  of  the  crossing  should 
have  a  sharp  curve  toward  the  center  of  the  track,  so 
that  the  end  of  the  guard  rail  will  be  about  four  inches 
from  the  main  track  rail,  having  the  outer  corner  of 
head  chamfered  at  each  end.  Previous  to  placing  the 
guard  rails,  a  piece  of  oak  that  will  fit  underneath  the 
railheads  and  base  should  be  so  placed  between  their 
webs.  This  strip  of  wood  filling  overcomes  the  objec- 
tionable feature  to  such  guards,  namely,  the  catching  of 


CONSTRUCTING  AND  MAINTAINING  TRACK.     223 

horses'  toe  calks  under  the  rail  heads.  The  space  be- 
tween the  two  guard  rails  should  be  filled  with  three  and 
one-half  inch  white  oak  plank  spiked  to  the  ties.  If  the 
track  rails  are  four  and  three-fourths  inches  high,  the 
plank  should  have  one-inch  oak  undershoring  extending 
the  full  width  and  length  of  the  tie  so  planked,  a  twelve- 
inch  plank  being  used  on  the  outside  of  each  main  rail, 
up  to  which  it  is  paved  between, tracks.  On  crossings 
of  little  traffic,  guard  rails  may  be  omitted,  having  in 
place  of  them  a  plank  beveled  so  as  to  lap  over  the  rail 
base  and  up  to  the  web,  to  prevent  dust,  dirt  and  snow 


Wooden  Stringer  and  Strap  Rail,  Albany  &  Schenectady  Railroad,  A.  D. 
1837.  A  strap  rail  was  used  on  many  of  the  first  railroads  in  America,  par- 
ticularly in  the  Central  and  Western  States. 

from  working  underneath  and  heaving  it  up.  The  plank 
should  be  beveled  on  the  upper  surface  sufficient  to  clear 
the  wheel  flanges,  the  upper  edge  of  the  bevel  being  dis- 
tant from  the  gauge  line  of  the  rail  two  and  one-half 
inches. 

GUARD  KAILS  FOR  BRIDGES.— Bridges  should  be  pro- 
vided with  guard  rails.  Old  rails  as  near  the  height  of 
the  main  rails  as  possible  should  be  used ;  these  rails 


224    FINANCING,  CONSTRUCTING,  MAINTAINING. 

should  be  placed  as  near  the  main  rails  as  the  splices 
and  spikes  will  allow,  and  on  the  approach  end  of  the 
bridge  should  be  earned  parallel  for  at  least  thirty  feet, 
where  they  should  converge  to  the  center  of  the  track  so 
as  to  line  into  the  old  point  of  a  frog;  at  the  point 
where  they  diverge  from  the  running  rail  rerailing  cast- 
ings should  be  placed.  Three  or  four  braces  should  be 
placed  on  the  inside  of  each  guard  rail  between  the  cast- 
ings and  the  frog  point ;  these  guard  rails  should  be 


Wooden    Stringer,  «-, 4- t"-vv»* 

Thick  Rectangular  Rail,  A.  D.  1838. 

spiked  on  each  tie,  and  as  a  foot  guard  for  the  frog 
point,  a  piece  of  twelve-inch  plank  (oak)  three  and  one- 
half  inches  thick,  cut  to  fit  the  frog  point  from  where  the 
rails  are  twelve  inches  wide  up  snugly  into  the  sharp 
point,  should  be  placed  and  spiked  to  the  ties,  finishing 
the  twelve-inch  end  by  leveling.  The  run- off  end  of  the 
bridge  for  double  track  need  not  have  a  rerailing  appa- 
ratus, but  the  guard  rails  should  be  continued  about 
thirty  feet  beyond  the  bridge,  where  they  may  terminate 
in  a  slight  curve  distant  from  the  main  rail  about  six 
inches. 


CONSTRUCTING  AND  MAINTAINING  TRACK.     225 

CATTLE  GUARDS. — Such  guards  should  be  placed  at  all 
farm  and  public  road  crossings  where  there  is  no  protec- 
tion by  gates  or  otherwise;  to  prevent  cattle  running 
along  the  track,  a  fence  should  be  built  from  the  right 
of  way  fence  on  both  sides  of  the  opening  to  as  near  the 
rail  as  practicable.  There  are  various  forms  of  cattle 
guards.  One  plan  in  particular  commends  itself,  being 
effective  and  cheap.  It  is  a  space  of  not  less  than  six 
feet  stretching  the  entire  width  of  the  track  parallel  to 
the  road,  laid  with  two  and  one-half  by  four  inch  oak 
pieces  laid  across  the  ties  parallel  to  the  rails,  cut  to  a 
sharp  edge  on  the  upper  face,  spaced  with  two-inch 
spacing  blocks,  and  spiked  down  to  the  ties.  The  most 
effective  plan,  however,  is  to  build  a  pit  the  entire 
width  of  the  road  about  six  feet  wide,  and  of  sufficient 
depth  to  enable  a  cow  to  drop  entirely  clear  of  the 
trains.  This,  however,  is  too  expensive,  requiring  the 
building  of  retaining  walls  and  bridged  for  the  rails 
only.  This  style  of  a  cattle  guard  is  perfectly 
effective. 

SLOPES  AND  DRAINAGE. — Cuts  should  be  sloped  to  an 
inclination  arrived  at  after  careful  examination  of  the 
material  composing  them.  In  ordinary  earth  cuts  a 
slope  of  one  and  one-half  to  one  will  be  sufficient,  while 
it  may  be  necessary  to  give  some  cuts  a  slope  that  an 
engineer  would  not  approve.  In  all  cases  they  should 
have  slopes  that  will  obviate  land  slides. 

FILLS. — Fills  made  of  rock  and  good  sharp  material 
will  give  little  or  no  trouble,  but  those  made  in  a  care- 
less manner  will  be  a  source  of  continual  expense. 
Engineers  should  prohibit  the  use  of  material  that  will 
slide  at  a  slope  of  more  than  one  and  one-half  to  one, 
unless  it  be  along  the  tail  of  fills,  where  the  weight  is 
comparatively  slight.  To  prevent  fills  and  cuts  from 
sliding,  in  slight  cases,  willow  cuttings,  or  shrubbery  of 
a  rooty  and  spreading  nature  may  be  planted.  In 
severe  cases,  broken  stone  or  slag  dumped  down  the 
face,  so  that  it  will  be  about  one  foot  deep  at  the  top 
and  two  or  three  feet  at  the  bottom  (or  of  a  greater 
thickness,  if  necessary),  will  prevent  sliding. 

15     Vol.    3 


226     FINANCING,  CONSTRUCTING,  MAINTAINING. 

KOCK  CUTS. — Eock  cuts  should  be  examined,  and  all 
loose  material  removed.  Trees  that  might  fall  on  the 
track  should  be  cut  down. 

SLOPE  DRAINAGE. — Earth  cuts  should  have  a  berme 
ditch  on  both  sides  (except  side  hill  cuts,  where  one  on  the 
upper  side  is  sufficient)  to  intercept  surface  water.  The 
ditches  should  be  of  sufficient  width  and  depth  to  accom- 
modate the  maximum  drainage.  At  the  tail  of  the  cut 
they  should  diverge  sufficiently  from  the  track,  so  that 
the  water  will  flow  off.  Ditches  should  be  run  parallel 
to  the  track  in  all  cuts,  and  wherever  the  adjoining 
ground  is  higher  than  the  roadbed,  the  bottom  of  the 
ditch  should  be,  for  single  track,  eight  inches,  and  for 
double  track  eleven  inches,  lower  than  the  center  of  the 
roadbed,  and  seven  feet  from  the  near  rail. 

SPRINGS  ON  SLOPES. — Cuts  showing  springs  of  water 
should  be  provided  with  a  system  of  surface  drainage. 
A  good  plan  is  to  dig  ditches  straight  or  diagonally 
down  the  slope,  intercepting  all  such  places  ;  the  nature 
of  the  material  will  determine  the  depth  and  distance 
apart.  These  ditches  should  be  filled  with  stone  of  a 
size  sufficiently  large  to  allow  the  water  to  pass  through 
their  interstices.  Should  the  flow  of  water  be  too  copious 
for  such  a  drain,  a  pipe  or  ordinary  square  built  drain 
will  answer  the  purpose. 

SODDING  AND  SOWING  GRASS  SEED  ON  EMBANKMENTS 
AND  CUTS. — Earth  cuts  and  embankments  should  either 
be  sodded  from  the  sod  saved  by  stripping  the  surface, 
or  by  sowing  grass  seed  and  white  clover.  Should  they 
not  slide  before  a  sod  has  been  formed,  this  will  be 
sufficient  to  prevent  slipping. 

TUNNEL  DRAINAGE. — Good  drainage  in  a  tunnel  is 
necessary  to  secure  safety  to  traffic,  and  enable  the 
trackman  to  do  his  duty.  Tunnels  have  proportionately 
more  water  to  be  drained  off  than  other  parts  of  the 
track,  owing  to  the  surface  water  permeating  to  them  ; 
moreover,  the  strata  being  interfered  with  in  the  build- 
ing of  a  tunnel,  it  receives  the  drainage  for  a  greater  or 
less  extent  of  country.  The  roadbed  of  a  tunnel  for 
double  track  should  have  a  uniform  grade  from  the 


CONSTRUCTING  AND  MAINTAINING  TRACK.     227 

sides  to  the  center,  with  a  fall  of  six  inches,  emptying 
into  a  drain  at  its  center  running  the  length  of  the 
tunnel  and  emptying  into  the  ditches  at  each  end ;  this 
drain  should  be  eighteen  inches  wide  and  twelve  inches 
deep,  with  a  covering  stone  to  allow  the  tracks  to  be 
filled  up  between.  Where  the  bed  is  other  than  rock, 
this  ditch  should  be  made  by  laying  a  bed  stone  wide 
enough  for  a  stone  on  each  side  to  rest  upon  it,  these 
forming  the  sides  of  the  drain ;  the  covering  stone 
should  rest  upon  the  side  stones.  Where  the  bed  is 
rock,  the  drain  should  be  excavated  as  near  the  required 
form  as  possible,  and  where  it  is  too  wide  side  stones 


Stevens  Rail,  Vicksburg  &  Jackson  Railroad,  A.  D.  1841. 

should  be  used  to  support  the  covering  stone.  All  large 
holes  should  be  filled  and  carefully  packed  to  a  uniform 
surface,  so  as  to  assist  the  flow  of  water  to  the  drain  and 
prevent  its  accumulation  in  pools.  The  grade  of  the 
track  in  long  tunnels  usually  has  its  summit  in  the 
center,  so  as  to  drain  toward  both  ends.  Broken  stone 
is  the  best  ballast  for  use  in  tunnels,  the  larger  sized 
stone  being  put  below  the  ties,  and  the  finer  from  thence 
up  to  the  surface.  If  the  bed  is  poor,  an  inverted  arch 
should  be  built  as  a  bed,  both  for  advantage  of  drainage 
and  to  support  the  side  walls  and  arch. 

SWITCHES. — The  split  switch  has  long  been  in  use  and 
is  the  favorite  for  all  purposes.     It  is  the  cheapest  (in 


228     FIXAXCIXG,  COXSTRUCTIXG,  MAIXTAIXIXG. 

the  long  run)  yet  invented.  The  split  switch  should  be 
planed  to  the  lightest  possible  angle,  without  having  the 
rail  too  long ;  the  best  length  and  angle  being  twenty- 
one  feet  long  with  a  spread  of  six  inches  at  the  heel, 
which  is  just  enough  to  clear  the  base  of  the  splice  from 
lapping  on  to  the  base  of  the  stock  or  main  rail.  The 
split  or  point  rails  should  be  planed  straight  on  both 
sides  (except  for  special  use)  and  chamfered  three  feet 
back  from  the  point.  All  split"  switches  should  be  fitted 
with  adjustable  rods.  The  best  form  of  side  plates  are 
made  of  one-inch  cast  steel.  The  objection  to  wrought- 
iron  plates  is  their  bending  and  the  imperfect  manner  in 
which  the  projections  for  the  point  rails  to  slide  on  keep 
the  main  rails  in  position.  The  point  rails  should  crown 
one-fourth  of  an  inch  above  the  main  rails,  which  gives 
a  good  shoulder  in  securing  the  main  rails  and  especially 
when  lining  up  the  track  at  the  time  the  switch  is  being 
put  in. 

SWITCH  SILLS. — Sills  for  switches  should  be  of  good, 
sound  white  oak,  seven  by  ten  inches,  well  seasoned. 
They  should  be  prepared  in  sets  by  cutting  the  line  side 
square  and  the  turnout  side  to  the  required  bevel.  The 
most  convenient  manner  to  cut  sets  of  switch  timber  is 
to  prepare  a  board  one  inch  by  ten  inches,  planed  and 
sufficiently  long  to  mark  the  longest  sill  thereon.  The 
length  and  bevel  of  each  sill  should  be  marked  by  a 
scribe  line  on  this  board  laid  off  from  the  square  or  line 
end,  having  a  line  indicating  the  outer  base  of  rail  on 
the  line  end,  for  guidance  when  putting  them  in  the 
track ;  on  the  turnout  end  of  the  board  the  number  of 
each  sill  should  be  marked  for  its  corresponding  line. 
These  numbers  should  be  marked  on  the  end  of  each  sill 
and  lettered,  thus,  R-10  or  L-10,  indicating  the  num- 
ber of  the  frog  the  set  is  for  and  whether  it  is  a  right  or 
left  turnout. 

FROGS. — As  the  stub  switch  is  to  the  split  switch,  so  is 
the  cast-iron  frog  to  the  rigid  rail  frog,  and  the  rigid 
rail  frog  to  the  spring  rail  frog.  Spring  rail  frogs  have 
been  long  tested,  and  have  stood  the  test,  except  at 
places  where  trains  run  at  great  speed.  The  damage  to 


CONSTRUCTING  AND  MAINTAINING  TRACK.     229 

the  spring  rail  frog  by  fast  running  is  either  in  the 
breaking  of  the  spring  or  spring  rail,  or  damage  to  the 
wheels  of  rolling  stock.  But  this  has  been  overcome  by 
the  use  of  heavier  rails.  While  the  cost  of  a  spring  rail 
frog  is  but  slightly  more  than  of  a  rigid  frog,  it  lasts  three 
times  as  long.  Rigid  frogs  should  not  be  longer  than 
will  allow  of  splices  being  put  on  without  cutting  the 
base  ;  in  no  case  should  they  be  shorter  than  six  feet,  as 
a  short  frog  has  a  tendency  to  tilt  whenever  the  wheels 
strike  either  end,  thus  depressing  the  sills.  The  distance 
from  the  toe  to  the  point  and  point  to  the  heel  should  be 
even  feet.  This  will  enable  trackmen  to  remember  the 
different  parts  of  the  frogs  more  readily  and  prevent 
mistakes.  The  distance  from  the  toe  to  point  of  spring 
rail  frogs  should  not  be  less  than  seven  feet,  and  the 
distance  from  the  point  to  the  heel  the  same  as  that  of 
rigid  frogs ;  this  will  save  cutting  when  there  is  occasion 
to  replace  one  by  the  other.  It  has  been  found  satis- 
factory to  rivet  (not  bolt)  rigid  and  spring  rail  frogs  to  a 
plate ;  it  increases  their  bearing  surface  on  the  sills  and 
more  securely  fastens  their  parts  together.  The  plate 
is  somewhat  expensive  at  the  beginning,  but  it  can  be 
used  over  and  over  again. 

TURNOUT. — The  simplest  form  of  a  switch  on  straight 
line  or  curves  is  a  turnout.  To  locate  a  turnout  on  a 
straight  line,  the  heel  of  the  frog  should  be  placed  at  a 
joint  if  possible,  so  as  to  save  a  cut  and  allow  the  guard 
rail  to  be  placed  clear  of  a  joint  on  the  opposite  rail ; 
this  obviates  the  use  of  a  fish  plate.  The  distance  from 
point  to  heel  of  frog  should  next  be  laid  off,  marking  the 
point  on  the  outside  of  the  head  of  the  rail,  and  the  lead 
should  be  laid  off  to  the  point  of  switch  from  the  last 
named  point,  marking  it  in  like  manner.  When  splices 
are  two  feet  long  and  the  switch  twenty- one  feet,  and 
bend  in  turnout  rail  two  feet  ahead  of  switch  point,  then 
the  joint  of  the  bent  rail  can  be  seven  feet  ahead  of  the 
last  named  point,  while  the  joint  on  main  line  side  can 
be  three  feet  ahead  of  same  point,  thus  allowing  them 
to  break  joints  by  four  feet  at  point  and  six  feet  at  heel 
of  switch  on  main  track;  this  clears  all  joints  so  that 


230     FINANCING,  CONSTRUCTING,  MAINTAINIXt,. 

there  will  be  no  two  butting  against  each  other,  and  no 
necessity  of  cutting  the  splice  base  or  using  fish  plates. 
If,  however,  thirty-inch  splices  are  used,  the  only  way 
to  clear  joints  will  be  to  put  joint  of  bent  rail  five  in- 
stead of  seven  feet  from  point  of  switch,  the  main  rail 
joint  remaining  the  same.  After  the  rails  are  cut  for 
the  main  track  side  opposite  to  which  the  frog  is  located, 
they  should  be  put  in  first,  the  switch  timber  being  next 
put  in  and  spiked  to  the  side  already  put  in,  spacing  them 
properly  for  all  joints  as  they  should  appear  when  the 
switch  is  completed.  When  putting  in  the  sills,  however, 
it  is  necessary  to  place  the  switch  plate  on  each  as  far  as 
these  plates  extend  underneath  the  switch,  spiking  them 
on  the  above  named  side,  but  only  as  much  on  the  opposite 
side  (as  well  as  for  the  remainder  of  the  sills)  as  will  be  nec- 
essary to  hold  the  rails  safely  in  position.  When  all  the 
rails  to  complete  the  main  track  are  ready,  the  frog  should 
be  put  in  place,  then  the  switch  laid  and  rails  bent  to 
place.  Next  the  track  should  be  spiked  throughout, 
spiking  the  turnout  rail  not  any  further  ahead  than 
its  bend,  which  should  be  done  to  gauge.  Next  the 
main  track  should  be  lined  up ;  that  done,  the  bent 
rail  should  be  spread  at  heel  of  switch  the  calculated 
distance,  and  lined  perfectly  straight  between  the  end 
and  bend  already  spiked.  The  switch  plates  should  be 
tapped  up  snugly  against  the  rail  and  spiked.  This 
will  allow  the  split  rail  to  fit  properly  to  the  bent  rail, 
and  line  nicely  for  the  main  track.  Since  the  split 
rail,  while  being  made  and  after  the  base  is  planed,  will 
curve  more  or  less  in  consequence  and  will  require  to 
be  straightened,  the  back  of  the  split  rail  should  be 
planed  perfectly  straight,  so  that  when  put  in  place  in 
track  and  thrown  over  against  the  straight  part  of  the 
spiked  bent  rail,  it  will  straighten  up  in  its  proper  posi- 
tion. The  bend  in  the  turnout  rail  should  be  according 
to  the  angle  of  the  split  rail.  In  order  to  secure  a  true 
bend  that  will  guard  the  point  to  its  fullest  extent,  the 
rail,  after  being  marked  where  the  bend  is  to  be  put, 
should  be  heated  enough  to  boil  a  spittle ;  then,  with  a 
rail  bender,  it  should  be  given  the  calculated  bend.  A 


CONSTRUCTING  AND  MAINTAINING  TRACK.     231 

line  should  then  be  stretched  between  these  two  points 
on  the  gauge  line,  and  the  calculated  distance  measured 
to  this  line  from  the  line  so  stretched.  If  this  rail  is 
bent  properly,  there  will  be  no  trouble  in  securing  a 
good  and  easy  working  switch.  The  turnout  lead  is  next 
to  be  put  in.  If  the  difference  in  length  of  curve  lead 
over  that  of  the  straight  lead  is  not  known,  the  switch 


Latrobe'i 


Compound  Rail,  wood  and  iron. 
A.  D.   1841. 


Baltimore    &  Ohio    Railroad, 


should  be  squared  and  rails  measured  and  cut  accord- 
ingly. These  rails  are  next  to  be  curved  to  calculated 
ordinates,  allowing  for  the  equivalent  of  five  degrees  of 
curvature  to  be  put  in  by  lining ;  the  splices  must  also 
be  slightly  bent  as  the  degree  of  curve  requires.  The 
lead  should  be  calculated  so  as  to  enable  the  frog  and 


232     FINANCING,  CONSTRUCTING,  MAINTAINING. 

switch  to  be  placed  naturally,  i.  e.,  straight  as  they  are 
built,  except  for  special  cases,  and  should  not  be  dis- 
torted in  the  track  to  a  curve.  A  frog  distorted  will  not 
remain  in  any  such  forced  condition,  and  will  thus  spoil 
the  lead.  Should  the  turnout  side  be  curved  to  suit  the 
turnout  lead,  it  necessitates  the  use  of  right  and  left 
hand  frogs.  This  is  objectionable.  They  should  only 
be  used  for  special  cases  when  it  is  desirable  to  lighten 
curves  to  the  minimum.  Engines  cannot  pass  through 
curved  frogs  unless  the  throat  is  made  wider  to  prevent 
the  rigid  wheels  binding ;  and  the  wider  the  throat  the 
less  the  point  is  protected  and  the  quicker  it  will  wear 
down.  In  lining  up  the  turnout  curve,  a  line  should  be 
stretched  from  the  heel  of  the  switch  (the  latter  being 
thrown  over  to  position)  to  the  end  of  curve  at  frog 
tangent ;  this  distance  should  be  divided  into  quarters 
and  the  curve  tacked  at  these  points  according  to  calcu- 
lated ordinates.  It  is  necessary  in  spiking  the  frog  to 
see  that  the  frog  as  well  as  heel  of  switch  is  spiked  at 
proper  spread,  otherwise  these  ordinates  will  be  of  no 
consequence.  The  curve  should  then  be  lined  between 
these  points  and  spiked  down. 

FKOG  GUARD  KAILS. — Guard  rails  may  be  made  of 
slightly  lower  rails  than  those  of  the  track  (never  higher), 
and  should  be  of  steel  in  preference  to  iron,  as  the  latter 
wears  more  rapidly,  consequently  widening  the  opening 
of  flangeway.  Guard  rails  should  be  made  of  old  rails 
removed  from  curves  where  the  rails  have  never  been 
changed  to  the  lower  side  or  turned,  their  original  height 
being  nearly  retained.  Each  guard  rail  should  be  cut 
in  two  and  bent  to  a  uniform  curve  throughout,  so  that 
the  maximum  opening  at  the  ends  will  be  three  and  one- 
half  inches  and  the  minimum  opening  at  the  center  one 
and  seven-eighths  inches,  thus  allowing  the  wheels  to  be 
drawn  to  the  guard  point  with  the  least  possible  jar. 
When  curving  these  rails  the  unworn  side  should  be 
kept  to  the  outer  side ;  the  base  of  the  outer  side  should 
be  planed  so  as  to  clear  the  spikes,  the  ends  having  the 
rail  heads  chamfered  on  each  side.  In  making  guard 
rails  care  must  be  taken  to  have  them  perfectly  level, 


CONSTRUCTING  AND  MAINTAINING   TRACK.     233 


They  should  be  placed  in  the  track  so  as  to  extend  over 
one  more  sill  ahead  of  the  frog  point  than  behind  it, 
letting  each  end  lie  uniform  relative  to  the  sills ;  this 
will  bring  their  centers  opposite  a  point  between  the 
throat  and  point  of  frog.  Each  guard  rail  on  a  curved 
track  should  be  supported  by  not  less  than  four  braces, 
and  on  straight  track  by  not  less  than  two.  As  the 
gauge  of  the  track  is  widened  the  guard  rail  must  be  set 
correspondingly  wide  from  the  track  rail. 

THEEE-^AY  SPLIT  SWITCH.  —  A  three-way  switch  is 
simply  two  turnouts  beginning  at  the  same  point,  or 
with  the  point  of  one  switch  far  enough  behind  the 
other  to  allow  it  sufficient  room  to  work  between  the 
main  turnout  rail  of  the  first  switch.  These  turnouts 
can  be  arranged  one  on  each  side  of  the  main  track,  or 
both  on  the  same 
side,  according  to 
the  frog  used,  so 
that  the  curve  of 
the  second  turnout 
may  not  be  too 
heavy.  When  one 
switch  is  behind 
the  other,  it  is  nec- 
essary to  make  ob- 
long holes  in  the 
web  of  the  turnout 
rail  of  the  first 
switch,  through 
which  the  rods  of 
the  second  switch  work.  Usually  the  first  or  second 
rods  are  all  that  require  to  be  dealt  with  in  this  manner, 
the  remainder  being  bent  down  at  right  angles  close  to 
the  split  rail,  low  enough  to  pass  under  the  turnout  rail 
of  the  first  switch.  All  crotch  frogs  should  be  "specials," 
built  to  the  proper  angle  and  curved  to  the  same  curve 
as  that  of  the  turnouts.  A  three-way  switch  consisting 
of  one  turnout  to  the  left  and  the  other  to  the  right  will 
require  two  bent  rails  opposite  each  other ;  if.  both  turn 
out  to  the  same  side,  one  bent  rail  is  all  that  is  required, 


First  Rail  rolled  in  America,  Baltimore  &  Ohio 
Railroad. 


234     FINANCING,  CONSTRUCTING,  MAINTAINING. 

but  it  must  be  bent  to  a  much  greater  angle.  The  main 
line  frogs  can  be  either  opposite  each  other  or  one  ahead 
of  the  other.  The  crotch  frog,  if  not  built  on  a  plate, 
should  be  supported  by  not  less  than  four  braces  so  as 
to  secure  its  position.  So  should  all  such  heavy  angled 
frogs. 

CROSS-OVERS  ON  STRAIGHT  LINES. — A  cross-over  is  a 
turnout  in  two  adjoining  tracks,  located  so  that  one  will 
connect  with  the  other  by  a  straight  line  between  frogs, 
or  curved,  as  the  case  may  be ;  the  latter,  however,  is 
only  done  where  room  is  deficient.  The  explanation 
given  to  the  turnout  is  applicable  to  this,  but  care  must 
be  exercised  in  setting  the  frogs ;  they  must  be  carefully 
spread  to  the  calculated  angles  or  distance  apart,  and 
the  tracks  lined  to  their  true  centers  before  spiking 
down,  otherwise  it  will  be  impossible  to  secure  a  line 
between  them. 

TURNOUTS  AND  CROSS- OVERS  ON  CURVES. — The  same 
leads  as  are  required  for  straight  lines  Ayill  practically 
suit  on  curves,  the  only  difference  in  their  construction 
being  more  or  less  angle  in  the  bent  rail,  and  making 
the  turnout  curve  longer  or  shorter  than  the  main  line 
curve,  according  as  the  turnout  is  on  the  inside  or  out- 
side of  a  curve — being  less  when  on  the  outside  and 
greater  when  on  the  inside.  Leads  with  a  heavy  curve 
should  have  their  gauge  widened,  as  provided  for  curves 
on  ordinary  track,  and  when  so  widened  the  guard  rails 
must  be  placed  correspondingly  wide.  Guard  rails  on 
turnout  side  should  have  six  braces  to  the  rail,  and  on 
main  track  four. 

DOUBLE  CROSS-OVERS. — A  double  cross-over  is  a  cross- 
over passing  directly  through  another.  It  is  a  conven- 
ient system  of  switching,  and  greatly  economizes  space. 
It  is  more  expensive  than  two  single  cross-overs,  though 
it  requires  less  timber.  It  requires  a  set  of  crossing 
frogs ;  the  two  center  frogs  being  double,  and  the  ex- 
treme frogs  either  double  or  single.  If  the  parallel 
tracks  are  less  than  eleven  feet  on  centers,  the  two  frogs 
in  the  main  track  on  one  side  and  the  nearest  center 
crossing  frog  on  same  side  require  to  be  built  in  one,  and 


CONSTRUCTING  AND  MAINTAINING  TRACK.     235 

should  be  on  one  plate ;  the  two  remaining  corner  or 
extreme  frogs  should  be  built  single.  No  special  rules 
can  be  given  for  putting  in  this  system  beyond  those 
heretofore  described. 

CROSSINGS. — A  crossing  is  where  one  track  passes 
directly  through  another  without  switches.  All  the  frogs 
may  be  double,  or  the  center  frogs  double  and  the 
extreme  single.  Should  the  crossing  be  on  straight 
lines,  it  is  more  economical  to  make  all  frogs  double 
and  reversible,  so  that  they  may  be  changed,  as  the 
wear  is  greater  on  one  side  than  on  the  other.  If,  how- 
ever, the  crossing  is  curved,  this  is  impossible ;  but  the 
center  frogs  may  be  made  double,  though  not  reversible, 
and  the  extreme  frogs  single.  It  is  not  absolutely  safe 
to  use  double  crossing  frogs  on  a  less  angle  than  fifteen 
degrees,  as  they  then  cease  to  be  self-guarding,  espe- 
cially so  on  curves.  Instead  of  using  double  frogs  for 
center  frogs,  it  is  much  better  to  use  a  system  of  mov- 
able points  admitting  of  any  angle  being  used.  The 
frogs  for  a  crossing  should  be  built  very  carefully,  and 
it  is  impossible  to  secure  a  good  line  and  gauge  unless 
they  are  strictly  true. 

SLIP  SWITCHES. — Slip  or  diamond  switches  have 
become  much  admired  in  this  country  for  their  com- 
pactness, and  because  they  embrace  nearly  all  other 
kinds  of  switches  in  the  space  required  for  one  of  them. 
What  is  known  as  the  number  seven  frog  is  the  angle 
usually  adopted,  so  that  the  center  double  crossing  frogs 
may  be  as  near  an  angle  that  will  be  self -guarding  as 
the  degrees  of  curvature  on  the  turnout  sides  will  permit. 
A  single  slip  switch  is  a  crossing  with  a  turnout  on  one 
side  only ;  a  double  slip  is  a  crossing  with  a  turnout  on 
both  sides.  The  rods  of  the  switches  are  depressed  near 
the  split  rail  so  as  to  pass  under  the  other  switch  and 
crossing  rails.  If  the  points  are  opposite  each  other,  the 
distance  between  the  diamond  or  crossing  rails  at  the 
point  of  switches  should  not  be  less  than  twelve  inches, 
so  as  to  allow  sufficient  working  room  for  the  points ;  if 
not  opposite  each  other,  one  point  may  be  placed  nearer 
to  the  frog  and  the  other  further  from  it.  It  is  important 


236     FINANCING,  CONSTRUCTING,  MAINTAINING. 

with  crossing  frogs  of  all  kinds  that  they  be  built  true, 
otherwise  it  is  utterly  impossible  to  put  them  in  cor- 
rectly, and  they  invite  disaster.  The  construction  of 
this  system  is  similar  to  the  turnout,  so  far  as  the  bent 
rails  and  side  plates  are  concerned,  only  the  joints 
should  be  brought  nearer  to  the  switch  points  (in  using 
number  seven  frog),  so  as  to  save  a  cut  on  the  outer  or 
turnout  rails.  It  is  customary,  however,  to  build  these 
split  switches  for  a  number  seven  frog,  especially,  so 
that  they  can  be  built  on  a  curve ;  when  such  is  the  case, 
there  should  be  no  bend  in  the  rails  referred  to,  but  they 
should  be  curved  to  correspond  with  the  switch  rail,  the 
curve  starting  sufficiently  far  ahead  of  the  point  to  allow 
the  turnout  and  crossing  track  to  gauge. 

MOVABLE  POINTS  IN  LIEU  OF  CEOSSING  FROGS. — To 
enable  slip  switches  to  be  used  on  curves  and  to  light 
angled  frogs,  it  is  necessary  to  use  a  system  of  movable 
points,  or  split  switches,  in  lieu  of  the  center  double 
crossing  frogs.  The  outer  rails  at  the  crossing  points 
should  be  bent  to  the  crossing  angle  at  that  point,  and 
the  points  of  the  movable  switches  placed  so  that  they 
will  come  six  inches  or  more  from  each  other  at  the 
crossing  point,  their  heels  being  connected  with  the 
diamond  or  crossing  rails.  These  points  work  on  plates 
extending  under  the  turnout  rails  and  offset  for  the 
movable  points,  as  is  customary  in  ordinary  switches, 
so  as  to  raise  the  split  rail  above  the  main  rail.  This 
system  of  movable  points  is  more  economical  than  the 
double  crossing  frogs,  as  they  will  last  as  long  as  the 
main  rails,  whereas  the  frogs  would  require  to  be 
removed  every  two  years  or  more,  according  to  the 
traffic.  In  addition  to  this  matter  of  economy,  they  are 
absolutely  safe  when  properly  attended  to.  It  is  quite 
common  on  examining  number  seven  crossing  frogs  to 
find  marks  squarely  on  their  points  made  by  the  flange 
of  wheels  on  imperfect  axles ;  as  the  angle  decreases  in 
crossing  frogs,  the  danger  is  proportionately  increased. 
The  above  system  is  very  desirable  for  yard  purposes, 
where  space  must  be  economized.  It  gives  access  to 
tracks  in  four  different  ways.  When  put  in  correctly, 


CONSTRUCTING  AND  MAINTAINING  TRACK.     237 


so  that  all  its  parts  fit  snugly,  it  will  stay  in  better 
line  than  any  other  system  of  switches.  This  is  due  to 
its  numerous  combinations  of  rails  and  frogs  so  con- 
structed that  each  part  braces  another.  The  plates  for 
these  switches,  except  for  the  movable  points,  can  be 
made  the  same  as  the  cast-iron  plates  used  in  the  ordi- 
nary switches  or  turnouts. 

SWITCHES  ON  OUTSIDE  OF  CUEVES. — All  facing  point 
split  switches  on  outside  of  curves  in  main  track  should 
be  "special,"  having  the 
point  rail  on  that  side  at 
least  two  feet  longer  than 
the  inside  point  rail,  so  as 
to  admit  of  a  guard  rail  be- 
ing placed  opposite  to  pre- 
vent the  wear  of  this  rail. 
There  is  more  or  less  of  an 
angle  at  the  point  of  all 
split  switches,  due  to  the 
fact  that  it  is  wholly  im- 
practicable to  plane  them  to 
the  theoretical  point  of  curve 
— the  consequence  being  the 
dropping  of  wheels  into  this 
angle,  creating  a  great  lat- 
eral strain  and  consequent 
wear  on  the  split  rail  point ; 
but  by  placing  the  guard 
rail  as  above,  it  will  be  suf- 
ficiently long  to  guide  the  wheels  clear  of  this  angle. 

DERAILING  SWITCH. — Each  side  track  leading  to  or 
from  the  main  track,  on  which  cars  are  allowed  to 
s^and,  should  be  provided  with  a  safety  throw  off  or 
derailing  switch  (except  where  grades  make  this  un- 
necessary). It  should  be  placed  not  nearer  to  the  main 
track  switch  than  the  point  at  which  the  siding  becomes 
parallel,  and  arranged  so  as  to  throw  the  cars  off  the 
side  track  and  prevent  them  from  entering  upon  the 
main  track.  This  switch  may  be  either  a  point  rail  of 
an  old  split  switch,  or  one  especially  constructed  for  the 


92-pound  Rail,  7  inches  high. 


238     FINANCING,  CONSTRUCTING,  MAINTAINING. 


purpose.  It  should  be  put  in  similarly  to  a  turnout  rail 
of  an  ordinary  split  switch,  having  side  plates  and  bent 
rail ;  the  bent  rail  should  be  carried  straight  along  the 
point  rail  as  far  as  the  rail  head  planing  extends, 
whence  it  should  diverge  from  the  track  so  that  its  end 
will  spread  at  least  five  inches  from  the  gauge  line  of 
the  near  track  rail,  so  as  to  clear  the  wheel  treads. 
This  switch  can  either  be  operated  by  a  stand  connected 
therewith  for  that  purpose,  or  connected  with  the  main 
track  switch.  In  either  case  it  should  be  provided  with 
a  lock  and  kept  locked  when  cars  are  on  the  track. 

CLEARANCE  POSTS. — All  tracks  leading  to  or  from  the 
main  track  should  have  a  distance,  clearance  or  tail 
post  set  in  the  ground  between  these 
tracks  immediately  beyond  the 
safety  switch,  and  not  nearer  to  the 
main  track  switch  than  eleven  feet 
on  centers.  These  posts  are  usually 
made  of  chestnut,  four  by  four 
inches  by  four  feet,  planed  square 
and  rounded  on  top,  the  lower  half 
being  placed  in  the  ground ;  they 
are  painted  white  and  tops  black. 

MAINTENANCE    OF    TRACK. 

A  railroad  is  not  a  permanent 
piece  of  work.  As  soon  as  traffic 
commences  repairs  are  necessary. 
T  Ran,  A.  D.  1850.  To  provide  for  this  necessity  section 
gangs  are  organized,  and  a  certain 
amount  of  track,  termed  a  "section,"  allotted  to  each. 
A  section  of  double  track  should  be  about  four  miles 
long,  and  of  single  track  about  six  miles  long.  On  roads 
having  a  large  traffic,  each  section  gang  should  consist 
of  a  foreman  and  one  and  one-half  men  per  mile  of 
double  track,  with  an  additional  allowance  of  one  man 
for  every  two  miles  of  sidings.  On  single  track  each 
gang  should  consist  of  a  foreman  and  one  man  per  mile 
of  track,  with  an  additional  allowance  of  one  man  for 
every  two  miles  of  sidings.  Taking  these  proportions  as 


CONSTRUCTING  AND  MAINTAINING  TRACK.     239 

a  basis,  sections  may  be  varied  in  length  as  locality  and 
circumstances  make  necessary.  Generally  speaking  no 
section  should  be  so  reduced  in  length  that  its  propor- 
tionate allowance  of  force  would  be  less  than  six  men 
and  a  foreman.  Watchmen  should  be  counted  extra. 
All  extra  work  should  be  calculated  to  be  done  by  a 
special  gang  and  ballast  train ;  or  extra  men  should  be 
allowed  section  foremen.  Each  section  should  have  a 
tool  house  large  enough  to  accommodate  a  hand  car 
and  a  full  complement  of  tools. 

SPUING  EEPAIRS. — When  the  snow  has  disappeared 
and  the  frost  is  going  out  of  the  ground,  the  track 
should  be  cleared  of  rubbish  and  dirt  accumulated 
during  the  winter;  then  should  begin  the  work  of  re- 
ducing and  removing  the  blocking  as  the  track  settles. 
As  soon  as  this  work  is  done,  spring  work  will  have 
fairly  begun.  Ditches  should  then  be  opened,  low  joints 
raised,  and  the  track  lined. 

EENEWING  TIES — OLD  TRACK. — The  foreman  should 
test  and  mark  each  tie  that  needs  to  be  removed.  He 
will  thus  know  the  number  of  ties  required,  and  where 
they  should  be  unloaded.  The  foreman,  when  ready  to 
renew  faulty  ties,  will  divide  his  gang  into  sub-gangs  of 
three  men.  Before  taking  out  a  tie,  the  spikes  should 
be  started  far  enough  to  allow  a  spike  to  be  placed  be- 
tween the  rail  and  tie,  when,  by  raising  the  rail  with  a 
bar,  the  old  tie  can  be  readily  removed,  and  the  new 
one  put  in  without  raising  the  adjoining  ties  from  their 
beds.  This  avoids  the  likelihood  of  ballast  getting  un- 
der adjoining  ties.  Previous  to  removing  the  old  tie, 
the  ballast  should  be  dug  out  on  either  side,  making  it 
lower  on  one  side  than  the  tie  bed ;  the  tie  should  then 
be  pulled  on  one  side  into  the  ditch  thus  made,  where 
it  can  readily  be  pulled  out.  The  new  tie  is  next  pulled 
into  the  same  ditch,  lifted  up  to  the  rail  and  drawn  to 
its  place.  If  it  is  too  thick  to  go  in  on  the  old  bed 
without  raising  track  too  high,  the  bed  should  be  low- 
ered accordingly.  The  old  bed  should  be  disturbed  as 
little  as  possible.  It  is  customary  with  most  section 
foremen  to  allow  their  men  to  lower  the  old  bed,  and 


240     FINANCING,  CONSTRUCTING,  MAINTAINING. 

as  this  cannot  be  done  with  exactness,  the  result  is  that 
the  new  tie  will  be  from  one  to  three  inches  too  low ;  this 
necessitates  tamping  from  time  to  time  in  order  to  make 
its  bed  as  solid  as  that  of  the  old  tie.  Every  ten  years 
at  least  a  track  should  be  raised  from  one  to  three 
inches  above  the  old  bed,  to  prevent  its  becoming  cen- 
ter bound;  all  low  spots  should  be  raised,  however, 
when  ties  are  renewed.  Old  ties  taken  from  track 
should  be  piled  on  the  last  day  of  each  week,  so  as  to 
give  the  track  a  neat  and  tidy  appearance ;  this  allows 
them  to  dry  either  for  use  as  cribbing,  firewood,  or  burn- 
ing on  the  ground.  Ties  should  be  adzed  level  to  secure 
the  better  fitting  of  the  rails  and  wheels.  Rails  will  not 


In...  I,    a|- j 


Track  (Dust)  Sprinkler,  A.  D.  1851. 

turn  on  tangents,  nor  on  the  outside  of  curves,  if  prop- 
erly elevated.  To  overcome  the  turning  of  rails  on  the 
inside  of  curves,  rail  braces  should  be  used ;  they  will 
also  prevent  the  spreading  of  the  track.  In  order  to 
perform  the  latter  office  properly,  a  brace  should  be 
placed  on  the  outer  rail  opposite  each  brace  on  the 
inner,  otherwise  the  spike  will  bend  over  and  the  tre 
pull  through.  Ties  should  be  renewed  for  the  season 
by  the  end  of  September ;  from  that  time  till  winter  the 
track  should  be  surfaced  and  trimmed,  and  the  ditches 
put  in  good  condition  for  the  winter. 

GRASS  AND  WEEDS. — Grass,  weeds  and  brush  on  the 
right  of  way  should  be  cut  sufficiently  often  to  prevent 
the  weeds  running  to  seed.  Generally,  one  cut  in  the 
first  week  in  August  will  be  sufficient.  Brush  cut  at 
this  time  is  not  likely  to  sprout  again.  Brush  and 
weeds  should  be  gathered  into  piles  and  burned. 


CONSTRUCTING  AND  MAINTAINING  TRACK.     241 

CHANGING  BAILS. — On  roads  having  heavy  traffic,  it  is 
customary  to  change  rails  on  Sundays,  preparing  the 
track  on  week  days.  On  roads  with  light  traffic,  rails 
can  be  changed  at  any  time.  One  side  of  the  track 
should  be  changed  at  a  time. 

PREPARING  TRACK  MATERIAL  FOR  SUNDAY  WORK. — 
Rails  and  splices  generally  require  to  be  filed  on  the 
ends  to  a  uniform  surface,  so  as  to  remove  project- 
ions ;  this  work  is  therefore  included  in  preparing  the 
track,  though  properly  speaking  it  should  be  done 
at  the  mill.  The  following  is  the  organization  of 
men  for  such  work,  namely :  The  first  thing  to  be 
done  is  to  put  four  men  on  the  car  of  splices,  two 
on  each  end,  to  file  and  inspect  the  splices,  each  man 
having  a  small  bench  to  lay  the  splice  on  to  facilitate 
the  filing ;  after  they  are  filed  they  should  be  thrown  on 
a  car,  laying  them  at  right  angles  to  each  other  the  full 
length  of  the  splice ;  this  will  facilitate  their  being 
counted.  When  the  men  have  sufficient  room  on  the 
car  they  are  filing  on,  they  should  pile  the  splices  be- 
hind them  in  like  manner.  Eails,  splices,  bolts,  nut 
locks  and  plugs  should  be  distributed  at  the  same  time 
as  the  rails.  It  is  necessary,  however,  to  have  half  of 
the  cars  which  are  loaded  with  rails  turned  on  a  turn- 
table or  Y  block  to  admit  of  their  being  unloaded,  with 
the  brand  on  the  outside  of  the  rails  as  they  will  be  put 
in  the  track. 

UNLOADING  'RAILS. — Care  should  be  exercised  in  un- 
loading rails.  Eails,  on  gondola  cars  especially,  should 
be  let  down  to  the  ground  on  skids,  and  each  skid  should 
be  provided  with  a  pulley  on  the  upper  end,  placed  be- 
low its  surface ;  a  rope  with  a  hook  sufficiently  large  to 
receive  a  rail  should  be  used  through  this  pulley  for 
lowering  the  rails  to  the  ground ;  each  skid  should  be 
provided  at*its  lower  end  with  a  round  iron  projection, 
around  which  the  rope  is  turned  for  the  purpose  of  con- 
trolling the  rails  while  being  lowered.  Two  men  on  the 
ground,  operating  the  ropes  raise  the  hooks  to  the  upper 
end  of  the  skids,  when  one  foreman  and  twelve  men 
(handling  seventy- six  pound  rails)  will  place  the  rail  in 

16    Vol.  3 


242     FINANCING,  CONSTRUCTING,  MAINTAINING. 


Pear-headed  Rail,  A.  D.  1853. 


the  hooks  and  lower  the  same  to  the  ground.  The 
first  named  two  men,  in  addition  to  lowering  these 
rails,  will  lift  the  skids  as 
the  car  is  moved  ahead. 
On  another  car  are  the  rails 
for  the  other  side  of  the 
track,  the  men  being  simi- 
larly organized.  Unload- 
ing a  rail  on  each  side 
prevents  moving  the  train 
so  often  and  obviates  the 
men  passing  from  one  car 
to  another.  Time  may  be 
saved  by  unloading  two 
rails  from  each  car  before 
moving  the  train  ahead,  un- 
loading the  next  two  rails 
one  rail  length  ahead  of  the 
last  two.  Two  men  on  the 
splice  car  will  distribute  the  splices,  bolts  and  nut  locks, 
and  two  men  with  a  basket  will  distribute  the  plugs  from 
the  supply  car. 

FILING  KAILS,  ETC. — As  soon  as  the  rails  are  un- 
loaded, men  should  be  set  at  work  to  file  the  ends  of  the 
rails  underneath  the  heads  and  upper  side  of  the  base. 
After  the  rails  are  unloaded,  the  men  should  be  organ- 
ized as  follows,  namely :  One  foreman  and  eight  men 
with  tongs  should  string  the  rails  along  the  outer  edge 
of  the  ties ;  one  man  with  an  adze  should  level  any  pro- 
jecting ends  of  same,  and  one  man  should  tack-spike 
all  unspliced  ends  of  each  four  rails.  For  six-bolted 
splices,  six  men  should  bolt  the  rails  and  lay  the  splices, 
bolts  and  nut  locks  at  each  unspliced  end.  Four  men 
should  remove  all  the  bolts  that  can  be  removed  with 
safety  from  the  rails  in  the  track;  these  men  should 
also  put  the  nut  locks,  or  washers  and  nuts,  on  each  bolt 
as  it  is  removed.  Four  men  should  pull  the  spikes  that 
can  be  pulled  with  safety,  those  remaining  being  left 
slightly  started.  On  tangents,  four  spikes  to  each  rail 
are  sufficient  to  leave  unpulled,  leaving  one  of  these 


CONSTRUCTING  AND  MAINTAINING  TRACK.     243 

spikes  at  each  joint;  on  curves,  six  spikes  to  the  rail 
should  be  left,  and  one  in  the  slot  hole.  These 
spikes  should  be  pulled  on  the  inside  when  the  same 
sized  rails  are  to  be  used,  and  when  of  different  base, 
the  inside  of  one  rail  and  outside  of  the  other  should  be 
pulled,  which  will  admit  of  their  being  laid  retaining 
the  same  gauge.  When  pulling  spikes  on  curves,  they 
should  be  pulled  on  the  side  having  the  ties  cut  down 
the  least,  which  will  more  readily  admit  of  ties  being 
adzed.  Four  men  should  be  at  work  score-adzing  each 
tie  on  the  side  from  which  the  spikes  are  removed,  keep- 
ing well  on  the  outside  of  the  spikes.  As  each  sub-gang 
finishes  its  work,  it  should  clear  the  ballast  between  the 
ties  and  underneath  the  rails  ;  the  other  foreman  should 
look  after  the  sub-gangs,  except  rail  stringers.  Two 
boys  should  be  engaged  in  carrying  water  for  the  men. 
In  all,  forty  men  will  prepare  in  the  above  manner  one 
mile  of  track  per  day.  On  double  track,  one  track 
should  be  used  to  distribute  from,  allowing  schedule 
trains  to  pass  on  the  other,  nagging  all  other  trains  and 
allowing  them  to  pass  as  they  arrive.* 

JOINTING  EA.ILS.  —  As  it  is  impossible  to  change  rails 
and  have  them  joint  on  the  old  ties,  it  is  necessary  that 
these  ties  be  changed  to  admit  of  the  slot  holes  being 
spiked,  and  thus  prevent  the  rails  from  running. 

*  GANG  FOR  CHANGING  RAILS  ON  SUNDAY.  —  The  same  gang 
of  men  that  prepared  the  track  at  the  rate  of  one  mile  per  day 
will  change  the  rails  at  the  same  rate,  organized  as  follows, 
namely: 

Men  removing  bolts  ..............................................  4 

Men  throwing  out  rails  .............................................  2 

Men  adzing  ties  ................................................  13 

Men  spiking  rails,  joint  slot  holes,  quarters  and  centers    ......  4 

Foremen  ....................................................     .....  2 

Men  pulling  spikes  ..............................................  4 


Men  plugging  spike  holes  ......................................  2 

n  guiding   and  testing  adzing  with  single  -  headed  spotting 
boards  with  face  one-half  inch  broad  ..........................  1 


Waterboys  .........................................................  2 

As  adzing  is  more  or  less  on  account  of  ties  being  cut  into, 
these  men  will  require  to  be  increased  or  diminished  accord- 
ingly. The  remainder  of  the  spiking  can  be  done  by  this  gang 
the  next  day,  as  well  as  tamping  up  all  ties  that  are  loose  or 
low,  especially  the  joint  ties.  They  should  also  go  over  all 
bolts  with  wrenches  and  tighten  them  up. 


244   FINANCING,  CONSTRUCTING,  MAINTAINING. 

MOVING  OLD  TRACK. — Improvements  of  line,  especially 
double  tracking,  when  the  old  line  is  being  improved  at 
the  same  time,  render  it  necessary  to  either  take  up  and 
relay  the  old  track  or  move  it  over  to  the  new  line.  When 
the  change  of  line  is  within  twenty  feet  throw,  it  is 
cheaper  to  move  the  track  than  to  take  it  up  and  relay. 
This  work,  like  changing  rails,  is  usually  done  on  Sun- 
days. It  is,  however,  possible  to  be  done  in  the  week,  if 
there  is  an  occasional  half  hour  or  so  between  trains.  It 
requires  skill  and  scientific  ability. 

PROPER  CARE  OF  ENGINEERS'  STAKES. — Grade  stakes 
set  by  engineers  for  top  of  rail  for  new  line  should  be 
set  so  as  to  be  clear  of  the 
track  when  it  is  being  moved 
to  place.  If,  however,  the  same 
grade  is  to  be  retained,  the 
foreman  in  charge  should  put 
two  intelligent  men  to  transfer- 
ring the  level  of  the  lower  rail, 
using  a  long  straight  edge  and 
track  level  for  this  purpose. 
The  engineers'  center  line 
stakes  are  liable  to  be  in  differ- 
ent  Positions  relative  to  the  old 
track  to  be  moved,  necessitat- 
ing the  latter  passing  over  these 
stakes  in  many  cases.  In  order  to  obviate  as  much  as 

nible  the  liability  of  their  being  moved,  they  should 
riven  sufficiently  low  to  clear  the  bottom  of  the  rail. 
Another  manner  of  dealing  with  these  stakes  is  to  pull 
the  spikes  out  of  each  tie  surrounding  the  same,  so  as  to 
allow  of  the  track  being  moved  and  leave  those  ties  un- 
touched. This,  however,  entails  considerable  expense. 
Another  manner  of  dealing  with  these  stakes  is  to 
transfer  them  so  as  to  be  entirely  clear  of  the  track 
when  moving.  Too  great  care  cannot  be  taken  with 
these  stakes,  in  order  to  facilitate  the  lining  and  sur- 
facing of  the  track  so  changed. 

PREPARING  TRACK  FOR  SUNDAY  WORK. — The  bed  for  the 
track  on  a  new  line  should  be  ballasted  and  leveled  off 


CONSTRUCTING  AXD  MAIXTAIXTXG  TRACK.     245 

on  tangents,  and  elevated  on  curves  so  that  the  bed  will 
be  within  two  inches  of  the  bottom  of  the  ties.  It  is 
necessary  to  prepare  this  bed  with  more  than  ordinary 
care,  so  that  when  the  track  is  moved  over  to  its  new 
position  trains  can  be  allowed  to  pass  without  the  neces- 
sity of  holding  them  until  the  track  is  tamped.  All 
trains,  however,  should  run  slowly  over  this  track. 
When  old  track  is  to  be  thrown  entirely  clear  of  the  old 
bed,  it  is  not  necessary  to  dig  it  out  between  the  ties,  but 
only  to  loosen  it  up  with  a  pick,  so  as  to  make  it  easier 


^OftW-vS^M 

Ring,  Joint  and  Wedge,  West  Jersey  Railroad. 

to  throw.  This  loosening  might  be  omitted,  but  in  that 
case  it  would  take  half  as  many  more  men  to  pull  the 
track  out  of  the  old  bed.  If  old  track  is  to  be  thrown 
less  than  the  length  of  a  tie,  the  part  occupying  the  old 
bed  should  be  dug  out  slightly  below  the  bed  of  the  ties, 
and  the  remainder  loosened  with  a  pick.  This  being 
done,  the  track  is  ready  to  be  thrown. 

MOVING  THE  TRACK  ON  SUNDAY. — It  is  necessary  that 
good  judgment  be  used  in  determining  what  amount  of 
track  can  be  moved  to  allow  necessary  trains  to  pass 
without  being  held,  and  also  to  determine  the  proper 
place  to  cut  the  track  so  as  to  prevent  the  necessity  of 


246     FINANCING,  CONSTRUCTING,  MAINTAINING. 

pulling  it  longitudinally  more  than  one  foot  each  way. 
The  men  may  be  divided  into  sub-gangs  of  not  more 
than  thirty  men  with  two  foremen  each,  and  a  certain 
piece  of  track  alloted  to  them.  This  number  of  men  will 
admit  of  being  divided,  using,  one  gang  behind  the  other 
in  throwing  the  track,  or  have  one  surfacing  while 
the  other  is  finishing  the  lining  and  surfacing  later. 
When  throwing  the  track  it  should  not  be  moved  more 
than  twelve  inches  at  any  time ;  this  saves  the  rails  and 
splices  and  prevents  twisting  the  ties.  Rail  cuts,  to 
allow  for  expansion  or  contraction,  should  be  at  the 
center  of  curves,  or  at  as  many  more  places  as  the  degree 
of  the  curve  and  distance  to  be  thrown  render  necessary. 
Not  less  than  six  men  should  be  placed  at  each  cut,  so  as  to 
employ  three  in  cutting  rails  and  three  drilling ;  they 
should  first  remove  the  splices  from  two  joints,  one  on 
each  rail,  and  pull  the  spikes  on  the  sides  opposite  to 
which  the  track  is  thrown,  so  that  the  ties  will  be  taken 
along  as  the  track  is  moved.  In  order  to  pass  trains 
after  curves  have  been  moved,  the  line  should  be  changed 
on  the  tangents  by  reversed  curve.  When  the  track  is 
in  place,  two  men  in  each  gang  with  sledge  hammers 
should  be  put  at  work  tapping  the  ties  to  proper  space 
and  square  to  the  rail.  Track  in  cinder  may  be  tamped 
only  with  shovels  and  tamped  with  bars  later  after  it  has 
consolidated. 

To  MOVE  TRACK  DURING  THE  WEEK. — After  the  track 
is  prepared,  it  is  necessary  to  know  how  much  shorter 
or  longer  it  will  be  when  moved.  This  can  be  ascer- 
tained by  setting  temporary  stakes.  They  should  be 
placed  on  the  line  of  rail  where  its  position  will  be 
when  changed,  measuring  along  this  new  line  to  the 
similar  rail  of  the  old  track,  after  which  this  latter 
rail  should  be  measured  between  the  same  points; 
thus  the  difference  between  them  is  obtained.  This  can 
only  be  done  correctly  by  using  a  steel  tape.  When 
moving  track  during  warm  weather,  the  track  to  be 
changed  should  be  first  examined,  and  for  every  tight 
or  close  joint  one-eighth  inch  allowed  for  expansion  ; 
the  sum  of  these  allowances  must  be  taken  into  con- 


CONSTRUCTING  AND  MAINTAINING  TRACK.     247 


T  Rail,  Long  Island 
Railroad. 


sideration  in  ascertaining  the  differ- 
ence between  the  two  rails.  The  rails 
should  then  be  cut  and  drilled  ready 
for  use.  When  the  time  selected  to 
make  the  change  arrives,  and  the  last 
schedule  train  has  passed,  gangs 
should  begin  to  throw  the  track, 
always  throwing  toward  the  point  or 
points  cut  loose.  As  soon  as  the 
throwing  of  the  track  is  started,  the 
rails  at  these  points  are  replaced  by 
those  already  cut.  When  the  track  is 
finally  thrown  to  position,  the  ends 
can  be  spliced  and  bolted. 

WINTER  REPAIRS,  GENERAL  ROU- 
TINE.—  The  principal  work  during 
winter  is  blocking  track,  clearing  snow 
and  ice,  and  keeping  ditches  open.  Where  track  heaves 
badly,  the  rails  should  be  marked  on  the  web,  and  in 
the  spring  such  places  should  be  dug  out  and  ballasted 
with  clean,  sharp  material.  No  digging  out  of  such 
places  should  be  done  during  winter,  other  than  lower- 
ing ties  to  overcome  too  high  blocking,  as  it  is  too 
expensive. 

BLOCKING  OR  SHIMMING. — Generally,  the  maximum 
blocking  should  not  exceed  two  inches.  On  curves,  the 
blocking  should  be  spiked  to  the  tie,  and  holes -bored  for 
spikes.  Good  and  cheap  blocking  can  be  had  from  car 
shops,  where  oak  offals  can  be  had  of  any  thickness. 
These  offals  should  be  from  four  to  six  inches  in  width. 
Extreme  blocking  on  tangents  may  be  four  inches  thick ; 
the  rail  block  should  be  braced  by  fitting  one  end  into  a 
notch  in  the  tie  and  the  other  underneath  the  head  of  the 
rail ;  the  block  should  be  spiked  to  the  tie  at  the  notched 
end,  and  should  incline  at  an  angle  of  forty-five  degrees. 
Another  manner  of  dealing  with  extreme  blocking  of 
from  four  to  six  inches  high,  is  to  have  the  blocking  in 
two  pieces,  the  first  being  two  feet  long,  the  width  of  the 
tie,  and  securely  spiked  thereto,  while  a  second  block  of 
the  same  size  is  laid  on  top  of  the  first  and  spiked 


248     FINANCING,  CONSTRUCTING ,  MAINTAINING. 

through  holes  bored  for  the  purpose.  The  rails  should 
be  track-spiked  through  half-inch  holes  bored  in  the 
blocking.  When  blocking  more  than  one  inch  thick  is 
used  on  curves,  the  safest  and  cheapest  method  (and 
the  least  injurious  to  ties,  especially  when  the  track  is 
braced)  is  to  spring  the  ties  from  their  bed  and  drive  a 
wedge-shaped  block  of  wood  underneath  until  the  rail 
rises  to  surface.  During  snow  storms,  sufficient  force 
must  be  kept  on  hand  to  keep  switches,  crossings, 
station  platforms  and  flangeway  of  track  open  for 
traffic. 

TEACKWALKEES  OR  WATCHMEN. — The  number  required 
depends  on  location.  The  least  should  be  one  by  day 
and  one  by  night.  It  is  the  duty  of  these  watchmen  to 
clean,  light,  put  up  and  take  down  switch  lamps ;  to 
tighten  bolts  and  remove  obstructions  from  drainage. 
When  more  than  one  trackwalker  is  employed,  each 
should  be  allotted  a  certain  distance,  commonly  called 
a  "beat;"  this  beat  he  should  patrol  ahead  of  schedule 
trains  as  nearly  as  possible.  A  shanty,  with  a  stove, 
should  be  provided  for  each  beat,  in  which  watchmen 
can  take  shelter. 

INSPECTION  OF  ROAD. — The   roadmaster   should   ride 
over  the  track  and  examine  it  from  the  rear  end  of 
trains  as   often   as  possible.      He 
—  •*'•-•  should  do  this  at  least  twice  a  week. 

He  should  note  all  irregularities  in 
the  track,  marking  off  on  previous 
notes  what  has  already  been  at- 
tended to  and  making  any  addi- 
tional notes  concerning  the  work. 
He  should  keep  informed  of  the 
work  each  gang  is  doing  and  as  to 
the  number  of  men  at  work.  His 
orders  to  foremen  should  be  given 

Pear-headed  Rail.  7erbally  \  b/  SO  doing  the  work  will 

be  executed  with  less  trouble  and 
at  less  expense.  He  should  make  frequent  visits  to  the 
foremen  and  walk  over  their  sections  with  them ;  these 
opportunities  should  be  improved  to  draw  section 


CONSTRUCTING  AND  MAINTAINING  TRACK.     249 

foremen's  attention  to  the  items  of  work  requiring  to  be 
done — explaining,  advising  and  encouraging  them.  Sec- 
tion foremen  should  walk  their  track  as  often  as  pos- 
sible— at  least  once  a  week.  Trackwalkers  should  report 
all  defects  or  obstructions  of  the  track  to  the  foreman ; 
should  any  such  be  found  likely  to  interfere  with  traffic, 
approaching  trains  must  be  nagged  until  the  track- 
walker has  an  opportunity  of  being  relieved  or  of  send- 
ing word  to  the  foreman ;  the  foreman  should,  in  turn, 
notify  the  roadmaster  and  ask  for  such  assistance  as 
may  be  necessary,  if  it  requires  more  force  than  his  own 
to  remedy  the  defect  or  remove  the  obstruction. 

PEEMIUM  SYSTEM. — Nothing  is  more  encouraging  or 
stimulating  to  men  engaged  in  any  work  than  the  fact 
of  having  an  object  in  view.  The  payment  of  premiums 
is  a  recompense  in  acknowledgment  of  superior  ability ; 
it  creates  a  stimulus  to  thrift  and  energy  that  cannot  be 
aroused  in  any  other  manner,  and,  at  the  same  time,  it 
does  not  injure  the  feelings  or  lessen  the  ambition  of 
those  less  successful.  The  mere  intrinsic  value  of  the 
premium  offered  is  not  the  sole  encouragement  given ; 
the  contest  for  pre-eminence  is  a  valuable  aid  in  the 
attainment  of  what  is  desired. 

MANAGEMENT. — The  contemplation  of  the  vast  ex- 
penses incurred  in  the  maintenance  of  way,  and  the 
necessity  for  rigid  economies  in  the  face  of  an  equal 
necessity  for  perfect  conditions,  illustrate  the  importance 
of  a  wise  and  progressive  management.  This  can  only 
result  from  careful  training  and 
judicious  selection  of  the  men  n* -1 '•.'"" 

who  manage  these  expenses,  either 
as  a  whole  or  in  part.  Therefore, 
to  obtain  competent  men  is  a  first 
requisite  of  any  well  conducted 
railroad.  How  to  obtain  such 
men  is  governed  largely  by  local 
considerations,  but  some  system 
of  training  and  examination  must 
be  instituted  for  men  who  are  to 
fill  the  responsible  positions.  Pear-headed  Kail. 


250     FINANCING,  CONSTRUCTING,  MAINTAINING. 

In  the  roadway  department  there  is  especial  need 
for  a  thorough  system  of  accountability,  which  can 
only  be  exacted  by  superior  governing  intelligence, 
and  must  be  executed  by  well  drilled  subordinate 
,__  talent.  Kailroading  has  ad- 

vanced from  the  experimental 
or  theoretical  stage  to  the  plane 
of  practical  business.  The  road- 
master,  or  engineer  of  main- 
tenance of  way,  should  know 
just  how  much  labor  and  mate- 
rial are  required  under  certain 
conditions  to  maintain  and 
equip  every  element  of  his  road- 
pear.headed  Rail.  way,  and  knowing  this,  he 

should  possess  accurate  stand- 
ards of  efficiency  and  economy,  and  every  man  who 
fails  to  work  to  these  standards  should  be  dropped  as 
incompetent. 


ROADBED. — The  roadbed  is  the  foundation  upon  which 
is  built  the  superstructure  or  track.  If  the  foundation 
is  defective,  its  imperfections  will  develop  a  rough  and 
dangerous  track.  The  material  of  the  roadbed  is  of  first 
consideration.  It  should  be  the  best  soil  or  earth 
obtainable  in  the  locality — soil  that  will  hold  its  posi- 
tion, become  compact,  resist  the  action  of  storms  and  pos- 
sess needed  elasticity.  Logs  in  a  roadbed  are  pernicious, 
as  they  decay  and  allow  of  sudden  and  dangerous 
pitfalls;  large  rocks  or  boulders  are  also  objection- 
able, as  they  allow  an  uneven  and  rigid  bearing  and 
permit  the  too  free  percolation  of  water,  that,  in  time  of 
heavy  rains,  may  develop  a  washout ;  clay  and  sand,  in 
about  equal  quantities,  generally  give  about  the  most 
satisfactory  results.  The  size  and  shape  of  the  roadbed 
will  be  determined  by  the  importance  of  the  road  and 
the  character  of  the  material ;  as  a  rule,  it  should  never 
be  narrower  at  the  top  than  six  feet  added  to  the  gauge 
of  track,  and  generally  eight  feet  should  be  added  to  the 


CONSTRUCTING  AND  MAINTAINING   TRACK.     251 

gauge  of  track  for  single  track  roads.  The  slope  of 
embankments  should  be  at  an  angle  of  one  and  one-half 
feet  horizontally  to  one  foot  vertically,  and  a  space  of  at 
least  three  feet  of  the  natural  earth  should  be  left 
between  the  base  of  embankment  and  the  inside  edge  of 
side  ditches.  This  space  is  called  the  berme,  which 
should  be  kept  intact. 

DRAINAGE  of  the  roadbed  is  the  process  of  preventing 
its  saturation  and  erosion  by  water.  Thorough  drainage 
is  necessary.  Ordinary  drainage 
is  provided  by  a  system  of  side 
ditches,  surface  ditches,  ballast 
and  the  improvement  of  natural 
waterways.  Extraordinary  drain- 
age, by  special  methods  to  suit 
particular  obstacles  to  be  over- 
come. Side  ditches  should  be 
straight,  with  a  uniform  gradient 
toward  their  outlet.  It  is  not 
customary  nor  expedient  to  make 

side  ditches  of  sufficient  capacity     .., __^ 

to  provide  for  the  largest  recorded  Pear.headed  Ran. 

rainfall,  as,  in  such  cases,  ordi- 
nary prudence  would  dictate  the  suspension  of  traffic  and 
the  construction  of  such  ditches  would  entail  useless 
expense  upon  the  road;  but  it  is  essential  that  side 
ditches  should  be  so  made  as  to  provide  for  carrying  off, 
with  greatest  directness  and  rapidity,  all  the  water 
falling  within  forty  feet  of  the  rail ;  beyond  that  limit 
surface  ditches  should  be  provided.  In  alignment,  side 
ditches  should  conform  generally  to  the  alignment  of 
the  road  and  should  not  be  deviated  around  stumps, 
boulders,  etc., 'as  such  obstructions  decrease  the  effi- 
ciency of  the  ditches  and  detract  from  the  good  appear- 
ance of  the  road ;  therefore  such  obstacles  should  be 
removed  and  ditches  made  straight,  except  where  they 
emerge  from  a  cut  and  join  the  ditches  along  the 
embankment,  when  they  should  be  connected  by  a  ditch 
of  gentle  curvature,  and,  at  such  connecting  ditches,  the 
earth  removed  in  their  construction  should  form  a  dam  on 


252     FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  side  toward  the  roadbed,  to  prevent  the  water  from 
the  cut  overflowing  the  ditch  and  damaging  the  embank- 
ment. Side  ditches  along  embankments  should  be  made 
of  a  cross  section ;  the  bottom  of  ditch  should  be  made 
to  slope  away  from  the  road,  as  any  wash  will  then 
occur  on  the  side  of  the  ditch  where  the  water  is  deepest 
and  away  from  the  road. 

Ditches  should  be  maintained  to  a  depth  of  at  least 
two  feet  below  the  level  of  the  bottom  of  cross  ties,  as  an 
earth  roadbed  will  absorb  water  to  the  height  of  two  feet 
by  capillary  attraction ;  they  should  gradually  increase  in 
size  toward  their  outlet.  Surface  ditches  should  be  con- 
structed on  all  slopes  that  tend  toward  the  roadbed  in 
cuts;  they  should  be  made  of  the  same  general  cross  sec- 
tion as  the  side  ditches  along  embankments,  except  that 
the  earth  should  be  thrown  on  the  side  of  the  ditch 
toward  the  roadbed.  This  affords  ready  access  for  the 
water  coming  from  the  slope,  and  prevents  overflowing 
on  the  side  of  the  road.  The  size  of  surface  ditches 
should  be  sufficient  to  carry  off  the  rainfall  from  the 
slope  on  which  they  are  dug ;  they  should  be  straight, 
free  from  obstructions,  and  increase  in  size  toward  their 
outlet,  which  should  be  directed  into  the  nearest  natural 
waterway.  On  new  roads  the  track  forces  should  watch 
the  drainage  system  with  special 
vigilance  during  storms,  as  some 
weakness  is  almost  sure  to  exist , 
which  will  develop  at  such  times. 
If  the  quick  construction  of  a 
ditch  is  necessary,  it  should  be 
started  at  the  lower  end,  as  it 
will  thus  drain  itself  as  it  is 
made.  Where  a  roadbed  is  in 
a  saturated  condition,  the  con- 
compound  Rail.  stant  Passage  of  t  r  a  i  n  s  will 
cause  the  track  to  sink  in  the 
wet  earth,  and  "  churn,"  resulting  in  a  rough  riding 
track.  To  prevent  this  and  also  the  "  heaving  "  of  track 
by  frost  in  winter,  a  layer  of  porous  material  called 
"ballast"  is  introduced  between  the  ties  and  roadbed 


CONSTRUCTING  AND  MAINTAINING  TRACK.     253 

proper ;  thus  the  weight  of  passing  trains  is  distributed 
uniformly  over  the  entire  surface  of  the  yielding  road- 
bed, producing  a  uniform  surface  under  all  circum- 
stances. Stone  broken  uniformly  into  cubes  of  about 
one  and  one-half  inches  on  the  side,  clean  gravel, 
furnace  slag,  clay  burned  with  coal  into  hard  lumps 
from  one  inch  to  two  inches  in  diameter,  and  coarse 
sand,  are  valuable  for  ballast  in  the  order  named.  The 
last,  however,  is  exceedingly  dusty,  and  is  of  too  unstable 
a  character  to  make  good  ballast.  Broken  stone  has 
the  advantage  of  freedom  from  dust,  dirt,  weeds  and 
grass.  Broken  stone  and  gravel  also  wear  much  better 
than  furnace  slag  or  burnt  clay.  To  insure  a  good 
track,  ballast  should  be  uniformly  placed  for  a  depth  of 
at  least  one  foot  below  the  ties.  Probably  the  ideal 
ballast  is  a  layer  of  broken  stone  from  eight  inches  to 
one  foot  thick  on  the  roadbed,  and  a  layer  of  from  four 
to  six  inches  of  gravel  above  the  broken  stone  and 
immediately  under  the  ties.  This  insures  perfect  drain- 
age, and  renders  the  track  easy  to  keep  in  surface.  The 
top  of  the  roadbed,  under  the  ballast,  should  slope  both 
ways  from  the. center,  so  that  water  filtering  through  the 
ballast  may  pass  off  immediately  into  the  side  ditches. 
Where  ballast  cannot  be  obtained  except  at  such  an  ex- 
pense as  to  be  prohibitory,  it  is  important  to  secure  per- 
fect drainage  in  other  ways.  In  such  cases  the  top  of  the 
roadbed  should  slope  both  ways  from  the  center  of  track 
to  the  bottom  of  the  ends  of  cross 
ties,  to  afford  an  opportunity  for 
rain  water  to  run  off  rapidly 
into  the  side  ditches.  This  is, 
however,  only  a  partial  remedy, 
as  the  roadbed  will  ultimately 
become  saturated  with  continu- 
ous drains.  The  surface  of  such 
track  should  never  be  broken 
during  rainy  weather,  as  the 
looser  the  earth  the  more  rapidly  compound  Rail, 

it  absorbs  the  water.     After  con- 
tinuous rains,  the  earth  of  a  roadbed  frequently  becomes 


254     FINANCING,  CONSTRUCTING,  MAINTAINING. 

so  thoroughly  saturated  with  water  as  to  render  it  unfit 
for  tamping  under  the  churned  ties :  in  such  cases  it 
is  necessary,  in  the  absence  of  ballast  and  dry  earth,  to 
use  some  other  coarse  material  as  a  temporary  sub- 
stitute until  dry  weather;  ordinary  grass  sods,  long 
coarse  grass,  or  even  brush,  particularly  pine,  may  be 
tamped  under  the  ties  ;  this  will  sustain  the  track  at  soft 
spots  in  a  passable  condition  for  a  considerable  length 
of  time. 

The  next  element  of  ordinary  drainage  is  the  improve- 
ment of  natural  waterways;  they  constitute  the  main 
arteries  of  a  drainage  system.  The  small  natural 
streams  should  be  examined  for  a  considerable  distance 
above  and  below  a  road,  and  all  obstructions  that  tend 
to  affect  the  natural  flow  of  water  should,  if  practicable, 
be  removed;  old  timber  from  bridges,  logs  and  other 
debris  should  never  be  allowed  to  obstruct  them. 

In  reference  to  extraordinary  drainage,  the  protection 
of  slopes  and  banks  is  an  important  feature.  Generally 
some  short,  creeping,  long-rooted  variety  of  grass  will 
be  ample  protection  for  slopes  and  banks,  both  from  the 
effects  of  rainfall  and  of  flowing  water.  It  frequently 
becomes  necessary,  however,  to  furnish  additional  pro- 
tection at  abutments  and  along  embankments  where 
there  is  a  swift  running  stream . 
Hock  revetments  or  "  riprap  " 
can  be  employed  to  good  ad- 
vantage in  such  places,  or  a 
wooden  revetment  or  walling 
made  of  old  bridge  timber  is  a 
good  substitute. 

This  walling  should  project 
into  the  trestle  opening  at  least 
six  feet,  so  that  the  current 
passing  around  the  corner  of 

Compound  Rail.  ^  revetment  walHng  win  form 

an  eddy  sufficiently  far  from  the  abutment  not  to  un- 
dermine it.  In  severe  storms,  where  revetments  have 
not  been  built  or  have  been  washed  out  from  any  cause, 
a  good  temporary  substitute  for  the  protection  of  tjie 


CONSTRUCTING  AND  MAINTAINING  TRACK.     255 

bank  is  found  in  tree  tops  or  large  bushes,  placed  so 
that  the  bushy  ends  of  limbs  will  spread  over  the  side 
of  bank  as  deep  in  the  water  as  possible,  the  butt 
ends  being  laid  in  a  direction  up  stream  against  the 
top  of  bank,  and  held  in  that  position  by  timbers  or 
earth  piled  on  them.  Springs  occurring  in  cuts  can 
generally  be  sufficiently  drained  by  means  of  porous 
drain  tile  run  at  right  angles  to  the  line  of  track,  about 
two  feet  below  the  ties,  the  ends  opening  into  the 
side  ditches.  Sometimes,  however,  it  is  necessary  to 
excavate  an  opening  in  the  roadbed  for  several  feet 
below  the  ties  out  to  the  side  ditches,  filling  the  bottom 
with  coarse  rock  and  the  top  with  sand  or  gravel. 

TRACK. — The  prevailing  material  for  cross  ties  is  tim- 
ber. The  qualities  required  of  timber  for  cross  ties  are 
durability,  to  resist  decay;  hardness,  to  resist  wear; 
toughness,  to  resist  breaking ;  and  elasticity,  to  save 
the  rail  and  rolling  stock  and  to  hold  spikes  in 
position. 

f  The  size  of  cross  ties  will  be  regulated  largely  by  the 
timber  supply  on  different  roads.  Where  suitable  tim- 
ber can  be  obtained  in  abundance,  a  cross  tie  seven 
inches  thick,  ten  inches  wide  and  nine  feet  long  is 
probably  the  best,  though  on 
many  roads  it  becomes  neces- 
sary as  a  measure  of  economy 
to  use  ties  from  six  to  eight 
inches  wide  and  eight  to  eight 
and  a  half  feet  long.  But 
whatever  the  size,  the  total 
bearing  in  a  given  distance  is 
the  important  feature;  the 
thickness  of  the  tie  should  be 
fixed  at  not  less  than  seven 
inches ;  the  length  not  less  compound  Ran. 

than  eight  feet,  and  from  that 

to  nine  and  a  half  feet,  bearing  in  mind  that  with  the 
increased  length  should  come  increased  thickness,  and 
the  width  from  seven  to  ten  inches.  The  distance  apart 
of  ties  in  the  track  should  be  regulated  according  to 


256     FINANCING,  CONSTRUCTING,  MAINTAIN  IXC!. 

their  width,  so  as  to  maintain  a  uniform  bearing  sur- 
face. The  usual  limits  of  this  bearing  surface  require 
that  ties  shall  not  be  placed  farther  apart  than  one  and 
one-half  times  their  width,  nor  nearer  than  a  space 
equal  their  width,  for  if  they  are  closer  there  will 
not  be  sufficient  room  between  the  ties  for  proper 
tamping.  Above  all  things,  the  size  of  ties  and  the 
distance  between  them  must  be  uniform  to  insure  good 
track. 

FENCES. — The  best  material  for  a  cheap  fence  is  wire, 
and  barbed  wire  is  the  most  effective.  Wire  is  prac- 
tically indestructible,  is  cheap  in  first  cost,  requires  the 
minimum  number  of  posts,  and  is  more  rapidly  put  up 
than  any  other  kind  of  fence.  A  top  rail  or  board 
should  be  added  as  a  brace  for  the  posts  and  as  a  pro- 
tection to  stock  that  cannot  see  the  wires.  A  flat  wire 
ribbon  with  projecting  points  is  used,  as  stock  can  see 
it  better. 

CATTLE  GUAKDS  are  the  means  of  continuing  fences 
across  railroad  tracks  without  interfering  with  the  pas- 
sage of  trains.  They  form  a  very  considerable  portion 
of  the  expenses  of  a  road,  and  therefore  it  is  desirable 
to  obtain  a  device  as  simple  as  possible,  and  yet  it  must 
effectually  exclude  all  stock  from  the  enclosure.  A 
framed  pit  sufficiently  wide  for  the  connecting  fences  to 
afford  proper  clearance  for  the  cars,  and  with  stringers 
for  the  rails  to  rest  on,  was,  until  recent  years,  the 
form  in  most  general  use.  The  danger  of  stringers 
spreading  and  the  disastrous  effect  of  a  derailment  at 
these  pits  led  to  the  addition  of  ties  and  guard  tim- 
bers ;  these  additions  permitted  a  much  shallower  pit. 
As  cattle,  sheep  and  goats  learned  to  walk  these  ties 
or  guard  timbers,  it  became  necessary  to  have  them 
chamfered. 

Many  other  forms  of  stock  guards,  principally  sur- 
face guards  intended  to  do  away  with  the  pit  entirely, 
have  been  suggested  and  patented. 

EOAD  CROSSINGS. — The  intersection  of  a  highway  with 
a  railroad  at  an  elevation  common  to  both  is  called  a 
road  crossing.  At  such  points  it  is  essential  to  provide 


CONSTRUCTING  AND  MAINTAINING  TRACK.     257 


Compound  Rail. 


an  easy  and  safe  means  of 
passage  for  vehicles  over  the 
track.  Grade  road  crossings 
in  cuts  and  on  or  near  curves 
should  be  avoided  whenever 
possible.  At  road  crossings 
the  grade  of  highways  im- 
mediately approaching  the 
track  should  not  exceed  one 
foot  in  ten.  Public  road  cross- 
ings should  be  sufficiently 
wide  for  two  teams  to  pass 
easily  abreast,  and  in  cities  the  width  should  be  regu- 
lated to  suit  local  requirements.  Eight  feet  is  suffi- 
ciently wide  for  private  crossings,  and  twelve  to  eighteen 
feet  for  public  roads ;  this  width  should  be  carried  out 
to  the  limits  of  the  right  of  way,  if  on  banks,  by  a 
"ramp"  of  the  same  width  as  crossing ;  culvert  pipe 
should  be  used  under  the  "ramp"  to  prevent  obstruction 
of  drainage. 

TOOLS. — The  character  of  a  workman  may  be  deter- 
mined by  his  tools.  If  found  in  proper  order  and  ready 
for  any  emergency,  he  may  be  classed  as  a  first  class 
foreman.  Good  tools  are  necessary  for  good  work. 
Foremen  should  be  provided  with  suitable  boxes  and 
racks  for  their  tools  and  should  not  allow  them  to 
become  mixed.* 

*  The  following  list  of  tools  is  suggested  as  an  outfit  for  a 
section  gang: 

Lanterns,  red 2 


Adze  ... 

Auger,  1  Mi-inch 

Axes,  club 

Axe,  hand 

Bars,  to  three  laborers  

Cans,  oil 

Car,  lever 

Car,  pole 

Chisel,  iyt  inch 

Chisels,  track 

Drill,  track,  with  six  bits. .. 

File,  8-inch  M.  8 

Gauge,  track 

Grindstone 

Hooks,  bush,  to  each  man. . . 

Jacks,  track 

Keg,  water 

For  each  five  sections,  one  rail  bender  and  one  rail  straightener. 

17    Vol.  3 


Lanterns,  white. 

Level,  track 

Line,  ditch,  100  feet  long 

Lock,  with  five  feet  of  trace  chain. 

Mauls,  spike 

Picks,  tamping,  to  three  laborers. . 

Saw,  cross-cut 

Shovels,  for  each  laborer 

Signals,  danger 

Spike  puller 

Square 

Torpedoes 

Wire,  telegraph,  feet 

Wrench,  screw,  14-inch. 


, 
Wrenches,  track,  for  each  laborer. .  1 


258     FINANCING,  CONSTRUCTING,  MAINTAINING. 


There  should  be  a  systematic  inspection  of  tools  by 
the  roadmaster.  Every  foreman  should  be  required  to 
to  have  his  full  number  of  tools  in  efficient  condition  at 
all  times.  Spirit  levels  should  be  tested  and  adjusted  at 
each  inspection.  Every  division  of  road  should  be 
provided  with  a  hand  derrick  car,  and  a  box  car  with 
wire  ropes,  blocks  and  falls,  levers,  jacks  and  blocking, 
and  on  every  road  where  the  traffic  is  of  much  impor- 
tance there  should  be  a  steam  derrick  of  at  least  thirty 
tons'  capacity,  and  a  car  fitted  up  for  the  accommoda- 
tion of  a  considerable  wrecking  crew. 

Steam  ditchers  and  ballast  unloaders  are  also  an 
essential  part  of  the  equipment  of  any  first-class  road, 
for  they  perform  the  services  of  very  large  forces  of  men 
at  much  less  cost,  and  are  ready  for  immediate  service 
when  it  is  frequently  impossible  to  secure  a  sufficient 
amount  of  labor  at  the  time  required. 

ORGANIZATION. — There  are  two  distinct  features  to  be 
considered  in  the  organization  of  the  roadway  depart- 
ment. The  first  is 
the  execution  of  that 
which  is  to  be  done ; 
the  next,  the  inspec- 
tion of  that  which  has 
been  done.  Under 
some  circumstances, 
the  duties  of  execu- 
tion and  inspection 
are  combined  in  one 
hid  ividual;  in  the 
broadest  sense,  how- 
ever, there  should  be 
no  community  of  in- 
the  inspector  and  the  man  who  is 
for  the  work.  The  man  who 


Box  Rail. 


terests  between 
directly  responsible 
executes  or  directs  the  execution  of  work  is  naturally 
inclined  to  magnify  its  excellence  and  excuse  its  imper- 
fections, but  he  who  views  it  with  the  practiced  eye  of 
a  critic,  whose  judgment  is  not  tempered  with  self- 
interest,  will  give  an  estimate  of  certain  and  just  value. 


CONSTRUCTING  AND  MAINTAINING  TRACK.     259 


Road  inspection  will  therefore  be  considered  under  a 
separate  heading,  as  a  distinct  system  instituted  to 
meet  the  increasing  exaction  of  modern  railroading. 

In  the  organization  of  the  roadway  service  there 
should  be  no  division  of  authority  or  responsibility ;  all 
orders  should  proceed  from  a  responsible  head,  and  all 
reports  should  ultimately  reach  his  office  and  be  con- 
solidated by  him  for  the  information  of  superior  officers. 
This  head  is  variously  termed  the  roadmaster,  superin- 
tendent of  roadway,  engineer,  etc.  Under  this  officer 
come  the  supervisors,  division  roadmasters,  or  assistant 
engineers,  as  the  case  may  be ;  also  timber  inspectors, 
pump  inspectors,  and  frequently  bridge  and  building 
inspectors;  then  come  the  gang  foremen,  etc.,  who  in 
turn  employ  their  own  laborers.  Under  such  an  organ- 
ization, with  a  proper  system  of  rules  and  accounts,  a 
road  may  be  extended  to  almost  unlimited  proportions 
by  a  simple  addition  to  the  number  of  divisions  and 
subdivisions,  and  an  enlargement  of  the  central  office. 
A  division  roadmaster  or  supervisor  is  rarely  capable  of 
supervising  more  than  one  hundred  miles  of  single 
track  or  fifty  miles  of  double  track  road.  On  our  more 
important  lines,  a  section  of 
single  track  should  not  exceed 
six  miles,  and  sectipnhouses 
should  be  placed  as  near  a 
telegraph  office  or  station  as 
possible. 

The  foreman  should  have 
the  care  of  track  and  property 
of  the  company  on  his  section, 
and  should  be  held  account- 
able for  their  proper  care  and 
maintenance. 

As  far  as  possible  the  road- 
master  should  lay  out  the  work 
for  his  foremen.  Foremen  Stevens  Rail, 

should  be  shown  the  value  of 

thorough  system,  of  planning  the  week's  work  ahead 
so  as  to  economize  time  and  to  accomplish  a  little  more 


260     FINANCING,  CONSTRUCTING,  MAINTAINING. 

than  the  proper  week's  allowance.  For  this  reason  it  is 
very  essential  for  the  roadmaster  to  establish  the  proper 
allowance  of  labor,  and  to  issue  a  little  in  advance  of 
requirements  the  necessary  material.  Foremen  should 
not  be  permitted  to  work  portions  of  a  day  at  points 
widely  separated,  as  the  loss  of  time  in  going  from  one 
place  to  another  will  easily  consume  a  large  percentage 
of  the  day's  time.  The  regular  inspection,  which  fore- 
men should  be  required  to  make  at  least  twice  a  week 
over  every  part  of  their  sections,  should  be  made  in 
such  a  manner  that  they  will  use  as  little  time  away 
from  their  regular  work  as  possible. 

The  following  rules  for  the  guidance  of  employes  in 
the  roadway  department  are  in  the  main  generally 
appropriate.* 

GENERAL  RULES. — Each  employe  whose  duties  require 
it  must  have  the  book  of  rules  with  him  while  on  duty. 

Any  employe  who  does  not  clearly  understand  the 
rules  must  ask  an  explanation  of  his  superior  officer. 

Employes  must  report  violations  of  rules  by  other 
employes  which  endanger  life  or  property,  or  which  pre- 
vent them  from  discharging  their  own  duty. 

Employes  while  on  duty  must  refrain  from  profane  or 
violent  language,  personal  altercation,  and  from  using 
intoxicating  drinks. 

Each  employe  is  hereby  warned  that  while  on  the 
tracks  or  grounds  of  the  company,  or  in  working  with 
or  being  in  any  manner  on  or  with  its  cars,  engines, 
machinery  or  tools,  he  must  examine,  for  his  own  safety, 
the  condition  of  all  machinery,  tools,  tracks,  cars,  en- 
gines, or  whatever  he  may  undertake  to  work  on  or  with, 
before  he  makes  use  of  or  exposes  himself  on  or  with  the 
same,  so  as  to  ascertain,  so  far  as  he  reasonably  can, 
their  condition  and  soundness ;  and  he  is  required 
promptly  to  report  to  his  superior  officer  any  defect  in 
any  track,  machinery,  tools  or  property  of  said  com- 
pany affecting  the  safety  of  anyone  in  operating  upon 
or  with  the  same. 

*I  copy  them  substantially  as  I  fiuclthem. 


CONSTRUCTING  AND  MAINTAINING  TRACK.     261 


Supervisors,  inspectors,  foremen  and  conductors  must 
keep  a  daily  record  of  their  occupation,  showing  in  detail 
the  work  done,  material  used,  and  the  time  of  each  per- 
son employed  under  their  immediate  supervision. 

Bed  must  not  be  worn  in  a  conspicuous  manner. 

Supervisors,  conductors,  section  foremen  and  fore- 
men of  all  other  gangs,  during  work  hours,  must  not 
leave  their  respective  division,  train,  section  or  gang, 
without  written  permission  from  the  roadmaster. 

In  case  of  accident  to  train  or  road,  the  highest  officer 
in  the  roadway  department,  or  the  oldest  foreman  in 
continuous  service  present  at  the  time,  will  have  charge 
of  the  work  until  relieved  by  someone  higher  in 
authority. 

Supervisors  must  pass  over  their  divisions  on  trains, 
and  foremen  over  their  sections  on  hand  cars,  during 
stormy  weather,  and  must 
know  that  all  is  safe  before 
allowing  trains  to  pass.  Con- 
ductors must  keep  in  tele- 
graphic communication  with 
the  roadmaster  and  the  master 
of  trains  during  the  continu- 
ance of  storms,  and  be  pre- 
pared to  move  on  shortest 
notice. 

Hand  cars  must  not  be 
towed  at  the  rear  of  trains, 
and  must  not  be  on  the  track 
after  dark,  nor  in  foggy 
weather,  unless  protected  by  proper  signals  in  front 
and  rear. 

Standard  plans  and  specifications  for  the  construction 
and  location  of  all  structures  will  be  furnished,  and 
officers  and  foremen  must  inform  themselves  of  such 
standards  and  work  entirely  in  conformity  with  them. 

Trains  must  be  expected  at  all  times. 

Foremen  and  officers  must  provide  themselves  with 
reliable  watches  before  entering  upon  their  duties,  and 


Single  Splice  Bar. 


262     FINANCING,  CONSTRUCTING,  MAINTAINING. 


see  that  they  are  always  in  order  and  conform  to  stand- 
ard time. 

When  watchmen  are  left  with  danger  signals,  they 
must  be  supplied  with  tools  and  required  to  work. 

When  dangerous  places  are  found,  or  while  work  is 
being  done  that  renders  the  road  unsafe  for  the  passage 
of  trains,  the  person  in  charge  must  attend  to  the  placing 
and  maintaining  of  danger  signals  on  the  engineer's  side 
of  track  in  both  directions.  In  no  case  must  they  be 
nearer  than  fifteen  telegraph  poles,  and  on  a  continuous 
down  grade  in  the  direction  of  the  work  the  signal  must 
be  placed  at  least  twenty  telegraph  poles  from  the  work. 
When  such  points  come  on  a  curve,  the  signal  must  be 
placed  at  the  further  end  of  the  curve.  If  either  signal 
cannot  be  clearly  seen  from  the  work  and  from  an 
approaching  train,  a  watchman  must  be  left  with  it. 

Whenever  signals  of  the  roadway  department  are  dis- 
regarded, immediate  report  must  be  made  to  the  road- 
master. 

Slow  boards  must  be  posted  at  a  distance  of  ten 
telegraph  poles  on  each  side  of  the  place  where  the 
speed  is  to  be  reduced. 

When  two  or  more  hand 
cars  may  be  following  each 
other  over  the  road,  they  must 
maintain  an  interval  of  at 
least  two  telegraph  poles 
apart. 

SUPERVISORS  OR  ASSISTANT 
EOADMASTERS:  Must  test  track 
levels  once  a  week,  and  see 
that  they  are  used  in  surfac- 
ing track;  must  see  that  fore- 
men are  supplied  with  the  full 
number  of  tools  required,  and 
Double  Splice  Bar.  that  they  are  in  proper  order ; 

must  carry  with  them  on  their 

hand  car  a  standard  track  gauge,  an  axe,  six  torpedoes, 
a  red  and  white  lantern,  and  a  red  flag ;  must  examine 
switches,  frogs  and  turntables  once  a  week,  and  see  that 


CONSTRUCTING  AND  MAINTAINING  TRACK.     263 

they  are  in  proper  order ;  must  see  that  turntables  and 
car  guards  are  provided  with  proper  means  to  securely 
lock  them;  must  see  that  their  foremen  are  provided 
with  the  proper  forms  for  making  reports,  and  with 
copies  of  all  rules  and  schedules ;  must  pass  over  their 
respective  divisions  at  least  once  a  week  on  a  hand  car, 
once  a  week  on  an  engine,  and  as  often  as  possible  on 
the  rear  of  a  train ;  must  see  that  signs  are  placed  where 
required,  and  are  kept  in  proper  order ;  must  see  that 
fences  are  kept  in  proper  order. 

Eeports  of  the  resignation,  discharge,  removal,  sus- 
pension, transfer,  death,  injury,  sickness,  or  marriage 
of  any  foreman  must  be  sent  at  once  to  the  roadmaster. 

FOREMEN  :  Must  be  familiar  with  the  regular  code  of 
signals  and  the  proper  position  and  use  of  torpedoes ; 
must  work  when  their  entire  attention  is  not  required  in 
directing  their  men ;  must  report  promptly  in  detail  to 
the  supervisor  any  accidents  to  persons  or  trains ;  must 
notice  the  signals  carried  by  passing  engines;  must 
examine  every  switch,  frog  and  guard  rail  on  their 
respective  sections  at  least  three  times  every  week,  and 
keep  them  in  good  order. 


Trackmen  must  see  that  the  nuts  and  bolts  in  the 
track  are  kept  tight. 

Road  crossings  must  be  kept  in  good  order. 

Foremen  must  watch  the  telegraph  lines,  especially 
after  storms,  unite  the  wires  when  broken,  and  keep 
poles  free  from  grass.  They  must  promptly  report  to 
the  roadmaster  any  derangement  of  wires  they  cannot 
repair. 

Old  ties  must  be  piled,  on  the  day  after  they  are  taken 
out,  not  less  than  thirty  feet  from  the  rail,  piles  to  be 
not  less  than  one  telegraph  pole  apart.  Old  timber  that 
is  unserviceable  must  be  burned. 

All  rails  or  scraps  of  metal  must  be  neatly  piled  at 
mile  posts,  stations  or  section  houses,  not  less  than  six 
feet  from  the  rail.  Serviceable  material  must  be  kept 
separate. 


264    FINANCING,  CONSTRUCTING,  MAINTAINING. 

Foremen  must  see  that  scattered  wood  or  trash  around 
wood  racks,  station  grounds  or  water  stations  is  prop- 
erly piled  up  or  burned. 

Foremen  must  repair  promptly  any  break  in  fences, 
and  report  the  facts  to  the  supervisor. 

Bushes  and  weeds  within  the  limits  of  the  right  of 
way  must  be  cut. 

Foremen,  when  working  on  track,  must  see  that  earth 
is  not  piled  up  in  such  a  way  as  to  touch  any  part  of  a 
train. 

The  track  must  never  be  raised  off  the  roadbed  where 
drainage  is  complete ;  the  low  places  should  only  be 
brought  to  a  surface  with  the  high  places. 

The  track  must  be  raised  level  with  track  jacks.  Ties 
must  be  uniformly  spaced  and  tamped.* 


Barlow's  "Saddle  Back"  Rail;   laid  without  supports. 

Spikes  must  be  driven  perpendicularly — outside  spikes 
three  inches  from  the  edge  of  tie  nearest,  and  inside 
spikes  three  inches  from  the  opposite  edge  of  tie,  except 
at  joint.  Ties  must  be  placed  square  across  the  track. 

*  The  following  rules  will  be  observed  in  laying  new  rails: 

a.  Defective  ties  must  be  removed  where  rail  is  laid,  and 
ties  properly  spaced  and  lined. 

b.  Track  must  be  put  to  true  gauge,  level,  line  and  surface. 

c.  Shims  of  proper  size  for  the  degree  of  temperature  must 
be  used. 

d.  Spikes  must  be  placed  in  the  slots  of  angle  plates. 

e.  The  full  number  of  bolts  must  always  be  used.      Nuts 
must  be  screwed  up  tight. 


CONSTRUCTING  AND  MAINTAINING  TRACK.     265 

The  track  must  be  kept  in  proper  gauge,  and  on  curves 
of  five  degrees  and  upwards,  guard  rail  braces  must  be 
placed  on  outside  of  both  rails  at  intervals  of  six  feet. 

The  ends  of  ties  put  in  must  be  lined  on  the  side  of 
track  on  which  the  mile  posts  are  located. 

Ditches  must  be  kept  free  from  obstructions. 

When  a  foreman  takes  charge  of  a  gang,  he  must 
receipt  for  all  company  property  delivered  to  him  by  his 
predecessor. 

Foremen  will  be  held  accountable  for  the  proper  care 
of  the  company's  property  on  their  sections. 

Hand  cars  and  tools  must  be  properly  secured  when 
not  in  use. 


CROC'S S      tE  \CWOOD> 

Triangular  Stringer  capped  with  iron. 

Details  concerning  the  track  are  infinite.  In 
another  volume*  will  be  found  particular  instruc- 
tions relating  to  the  duties  of  trackmen  in  con- 
nection with  the  operation  of  trains.  In  addition 
to  such  rules,  and  supplementary  to  those  already 
given,  the  following  suggest  themselves; 

*  Train  Service. 


266     FINANCING,  CONSTRUCTING,  MAINTAINING. 


Laborers  will  be  arranged  in  gangs  of  such  number 
and  force  as  the  roadmaster  may  direct ;  to  each  gang 
there  must  be  a  foreman,  who  must  work  constantly 
with  his  gang,  and  will  be  held  responsible  for  the  faith- 
ful and  efficient  execution  of  the  work  under  his  care.* 

The  safety  of  life  and  property  requires  that  section- 
men  should  be  especially  vigilant  in  foggy  weather  and 
during  and  after  storms,  t 

They  must  see  that  all  obstructions  upon  the  track, 
or  likely  to  fall  thereon  so  as  to  endanger  the  safety  of 
trains,  are  promptly  removed. 

In  no  case,  except  in  the 
most  absolute  necessity,  is  a 
rail  to  be  displaced  or  any 
other  work  to  be  performed  by 
which  an  obstruction  may  be 
made  to  the  passage  of  trains 
during  a  fog  or  snow  storm ;  the 
times  for  effecting  repairs  which 
involve  the  stopping  of  trains 
must,  as  far  as  practicable,  be  so 
selected  as  to  interfere  as  little 

73-pound    Rail,     under    head  &S   possible  with   the   passage    of 
planed  for  splice.  traffic. I 

Gravel  or  ballast  unloaded  along  the  line  must  be 
promptly  spread  upon  the  track,  so  as  not  to  endanger 

*  "  In  each  gang  of  platelayers,  or  men  repairing  the  perma- 
nent way,  there  shall  be  a  foreman  or  ganger." — English  Stand- 
ard. 

f  "  They  must  see  that  after  all  heavy  winds,  rains  and  other 
storms,  and  during  the  same,  the  men  are  out  on  the  road  ready 
to  render  such  assistance  as  maybe  required,  and  to  give  proper 
warning  to  the  trains,  and  to  repair  such  damages  and  remove 
such  obstructions  as  are  necessary.  In  foggy  weather,  when  a 
train  cannot  be  seen  at  three  hundred  yards,  all  the  foremen 
and  laborers  must  leave  their  ordinary  work,  and  the  foreman 
must  range  them  along  his  portion  of  the  line,  over  which  they 
must  walk  up  and  down,  driving  such  spikes  and  keys,  or  doing 
such  other  work  as  needs  attention,  and  be  ready  to  give  notice 
of  danger  to  the  signalmen  or  the  trains.." — 1854. 

|  "  In  all  cases,  before  taking  out  a  rail,  the  platelayer  must 
have  at  the  spot  a  perfect  ratlin  readiness  to  replace  it." — Eng- 
lish Standard. 


CONSTRUCTING  AND  MAINTAINING  TRACK.     267 

the  safety  of  trains.*  In  lifting  the  permanent  way, 
no  lift  must  be  greater  than  three  inches  at  once,  and 
then  it  must  be  effected  in  a  length  of  at  least  twenty 
yards,  in  such  a  manner  as  not  to  occasion  any  sudden 
change  of  gradient.  Both  rails  must  be  raised  equally 
and  at  the  same  time,  and  the  ascent  must  be  made  in 
the  direction  in  which  the  trains  run.f 

Trackmen  must  keep  the  fences  in  good  order  at 
crossings  and  at  each  side  of  the  track ;  they  must  see 
that  all  breaks  are  repaired  without  delay  ;  I  that  cattle 
guards  are  kept  in  repair ;  that  all  gates  that  are  found 
open  are  closed,  and  that  all  bars  found  down  are  put  in 
proper  condition.  || 

When  watchmen  are  employed,  they  must  walk  over 
the  track  and  carefully  inspect  the  same  at  intervals 
between  the  passage  of  trains. §  It  is  the  duty  of  watch- 

*  "  No  ballast  must  be  thrown  up  to  a  higher  level  between 
the  rails  than  three  inches,  and  it  must  be  thrown  as  much  as 
possible  on  the  outside  of  each  line,  and  between  the  two  lines, 
and  be  replaced  as  soon  as  possible.  The  rails  must  be  kept 
clear  of  gravel,  ballast  or  any  other  material." — English  Stand- 
ard. 

f  English  Standard. 

\  "  Surely,  it  is  far  better  to  stop  a  hand  car  and  repair  a  fence 
than  to  subject  a  company  to  damages  for  killing  stock,  Avith 
the  additional  expense,  occasionally,  of  a  wrecked  train.  In  a 
word,  men,  when  passing  over  a  road  with  a  hand  car,  should  be 
prompt  to  remedy  every  defect  they  discover.  It  should  be  a 
rule  never  to  postpone  any  work  of  repairs  that  can  be  done  on 
the  instant." — The  Roadmasters'  Assistant,  page  118. 

||  "  Gangers  must  close  and  fasten  all  gates  they  find  open, 
and  report  the  circumstances,  in  order  that  the  persons  who  are 
required  to  keep  such  gates  closed  and  fastened  may  be  charged 
with  the  proper  penalties.  The  gangers  must  take  care  to  main- 
tain proper  scotches  on  all  sidings  requiring  them." — English 
Standard. 

§  "  Whenever  any  person  has  occasion  to  walk  on  the  railway 
he  must  not  walk  on  either  line  of  rails,  but  on  the  right-hand 
side  of  the  line,  off  the  ballast,  clear  of  passing  engines  or 
trains." — Great  Northern  Railway  of  England.  "  Gangers  must 
order  off  the  railway  all  persons  trespassing  within  the  fences, 
and  must  do  their  best  to  obtain  the  trespasser's  name  and 
address.  If  any  trespasser  persists  in  remaining,  they  must 
take  him  to  the  nearest  station  and  give  him  in  charge  of  the 
stationrnaster  or  police  there;  or  (if  any  police  constable  be 


268     FINANCING,  CONSTRUCTING,  MAINTAINING. 

men  (and  switchmen  and  agents  as  well)  to  signal  trains 
that  disregard  the  regulations  prescribing  the  time  and 
distance  that  must  elapse  between  trains  that  are  fol- 
lowing each  other.* 


Erie  Rail  with  ends  stamped  for  Adams'  Cast-Iron  Bracket  Splice,  A.D.  1857. 


Foremen  are   required,   in  the   event  of  storms   or 
floods,  to  examine   carefully  the   action  of  the  water 


nearer  than  the  nearest  station)  gangers  must  give  the  tres- 
passer in  charge  of  such  constable,  and  report  at  once  having 
done  so  to  the  nearest  station." — Great  Western  Railway  of 
England. 

* "  The  foreman  and  other  men  of  the  squads  must  look  at 
every  passing  train,  and  if  they  see  a  train  running  on  the 
same  track,  within  ten  minutes  of  another  train,  or  anything 
wrong,  they  must  signal  the  engineman  with  a  red  signal,  and 
they  must  report  to  the  trackmaster  when  an  engineman  does 
not  obey  the  signals." — 1854.  •  "  Where  the  line  is  not  worked 
under  the  block  telegraph  regulations,  if  a  passenger  train 
approach  within  ten  minutes  of  a  goods,  cattle,  mineral  or  bal- 
last train,  or  light  engine,  the  men  repairing  the  line  must  give 
the  engine  driver  of  such  passenger  train  a  signal  to  go  slowly." 
—English  Standard. 


CONSTRUCTING  AND  MAINTAINING  TRACK.     269 


Double  Splice  liar. 


through  the  culverts  and  bridges 
on  their  length  of  line ;  and  should 
they  see  any  cause  to  apprehend 
danger  to  the  works,  they  must 
immediately  exhibit  the  proper 
signals  for  the  trains  to  proceed 
cautiously,  or  to  stop,  as  neces- 
sity may  require,  and  inform 
the  inspector  thereof ;  and,  until 
the  inspector  arrives,  they  must 
take  all  the  precautionary  meas- 
ures necessary  for  securing  the 
stability  of  the  line.* 

They  must  see  that  water 
courses  under  the  bridges  and 
culverts  are  not  allowed  to  become  clogged  or  obstructed.! 

In  wet  weather,  and  during  and  after  snow  storms, 
they  must  use  every  effort  to  prevent  delay  or  accident 
to  trains.  1 

Track  foremen  must  carefully  walk  over  and  inspect 
every  portion  of  the  section  under  their  charge  at  least 
once  each  day.§ 

*  Great  Western  Kailway  of  England. 

f  "  They  will  be  particular  not  to  allow  standing  water  upon 
any  part  of  their  line,  but  keep  the  ditches  open  and  free  at  all 
times,  and  keep  floodwood  away  from  the  culverts,  bridges  and 
water  courses."— 1853. 

% "  Their  whole  time  will  be  devoted  to  their  duties  in  the 
service  of  the  company,  and  generally  their  services  are  more 
urgently  required  in  bad,  inclement  weather  than  at  any  other 
time.  In  winter  it  is  as  much  their  duty  to  keep  the  track  clear 
from  snow  and  ice,  as  far  as  it  is  possible,  as  to  keep  it  in 
repair.  At  this  season  every  possible  effort  should  be  made  to 
keep  the  road  open  and  insure  the  regularity  of  trains." — 1853. 

$  "  Each  ganger  must  walk  over  his  length  of  the  line  every 
morning  and  evening  on  week  days  (except  where  the  engi- 
neers consider  once  each  day  sufficient,  and  have  laid  down 
such  instructions  in  writing)  and  where  passenger  trains  are 
run,  once  on  Sundays,  and  tighten  up  all  keys  and  other  fasten- 
ings that  may  be  loose;  and  he  must  examine  the  line,  level  and 
gauge  of  the  road,  and  the  state  of  the  joints,  marking,  and  if 
necessary  repairing,  such  us  are  defective."—  Great  Western 
Railway  of  England. 


270     FINANCING,  CONSTRUCTING,  MAINTAINING. 

Each  foreman  must,  when  going  over  iu&sjength  of 
line,  to  examine  the  keys  and  fastenings  of  ibe  rails, 
have  with  him  a  keying  hammer  and  spanners  or  nut 
keys,  and  be  prepared  promptly  to  supply  keys,  nuts, 
packings,  fastenings,  or  other  parts  of  the  permanent 
way  that  may  be  required.* 

No  wagon  or  other  vehicle  employed  in  the  permanent 
way  department  must  be  left  in  any  siding  without  the 
wheels  nearest  to  the  entrance  into  the  main  line  being 
properly  blocked  and  secured. t 

Old  and  unused  material  of  every  kind 
upon  the  line  of  the  road,  or  at  stations 
or  shops,  must  be  carefully  collected  and 
preserved.  I 

All  luggage,  goods  or  articles  found 
on  the  line  must  immediately  be  taken 
to  the  nearest  station,  and  a  report  made 
containing  the  best  information  that  can 
be  obtained  respecting  the  train  from 
which  they  may  have  f  alien.  § 

Trackmen  working  in  a  tunnel,  when 
trains  are  approaching  in  both  direc- 

tions,  must,  if  unable  to  reach  any  recess 

Bull-Beaded  Rail  ^n  ^ne  waHs>  I*6  down  either  in  the  space 
between  the  two  lines  of  rails,  or  be- 
tween the  line  and  the  side  of  the  tunnel,  until  the 
trains  have  passed.  The  width  of  the  space  depends 
on  the  construction  of  the  tunnel,  with  which  every  man 
must  make  himself  acquainted  in  order  that  he  may 
select  the  place  which  affords  the  greatest  safety.  || 

*  Great  Western  Railway  of  England. 

f  English  Standard. 

J  "  They  will  protect  the  materials  or  property  of  the  com- 
pany (whether  new  or  old)  upon  their  line  from  depredation, 
loss  or  injury,  and  keep  it  properly  and  neatly  piled  up,  ready 
for  use  or  removal." — 1853. 

§  English  Standard.  "  Anything  which  may  have  been  lost 
from  a  passing  train,  such  as  a  casting,  nut,  screw  or  bolt,  or 
any  piece  of  machinery,  piece  of  freight,  baggage,  or  other 
matter,  they  will  pick  up  and  carry  to  a  regular  station  and 
deliver  to  the  station  agent." — Old  Rule. 

I  English  Koad. 


fOXS  Tit  Uf  TING  AND  MA  INT  A INING  TRA  CK.     271 


Trackmen  must  desist  from  work  upon  a  train  ap- 
proaching, and  must  not  cross  over  to  the  other  lines, 
but  move  'to  the  side  of  the  road,  clear  of  all  the  lines, 
to  secure  themselves  from  the  risk  of  accident  by  trains 
running  in  opposite  directions. 

of  any  fire  taking  place  upon  or  near 


Bull-Headed  Rail. 


the  line,  employes  must  take  immediate  measures  for 

putting  it  OUT;* 

-   Bridges  and  culverts  should  be  care-  .-•-'•  *'••- 

fully  inspected    after    the    passage  of 

each  train;    but  where  this  is  impos- 

sible they  must  be  examined  daily,  or 

oftener,   if    sectionmen    have  occasion 

to  pass  over  them.     All  defects  should 

be  promptly  remedied,  and  in  the  event 

sparks,  burning  waste,  fuel  or  fire  of 

any  kind  is  observed,  it  should  be  put 

out.t 

Before  removing  any  traveling  crane, 
the  person  in  charge  of  it  must  see  that 
the  jib  is  properly  lowered  and  secured, 
and  so  fixed  that  it  will  pass  under  the 
gauge,  and,  when  it  has  to  be  removed 
by  train,  it  must,  when  practicable,  be  so  placed  that 
the  jib  will  point  toward  the  rear  of  the  train. 

*  "Careless  firemen  frequently  throw  overboard  handfuls  of 
dirty  waste,  which  at  any  time  may  be  ignited  by  a  spark  from 
a  passing  locomotive.  Fire  may  be  carried  thence  into  the  dry 
grass  by  the  roadside,  afterward  into  the  fence,  and  so  on  to 
haystacks,  buildings,  woodpiles,  etc."  —  The  Roadmasters'  As- 
sistant, page  116. 

•f  "When  a  gang  of  trackmen  engaged  at  work  discover  smoke 
on  a  line,  they  should  at  once  attend  to  it.  It  should  be  a  rule 
at  all  times  never  to  neglect  the  least  indication  that  a  fire  has 
caught  on  the  line.  On  more  than  one  occasion  expensive 
bridges  have  been  destroyed  owing  to  a  neglect  to  stop  the 
hand  car  and  remove  a  live  coal  of  fire  dropped  by  a  locomotive, 
or  to  put  out  a  fire  caused  by  a  spark  from  a  smokestack  lodging 
in  a  decayed  spot  of  timber.  Some  of  the  worst  wrecks  on  rec- 
ord have  been  taken  out  of  culverts  where  a  stringer  has  been 
nearly  burned  through."—  Ibid,  pages  116-117. 


CHAPTER   VIII. 

MAINTENANCE    OF    TRACK. 

In  the  maintenance  of  railways  the  track  is 
the  source  of  the  greatest  single  expense.  This 
we  may  divide  under  several  heads.* 

These  relations  will,  of  course,  vary  in  differ- 
ent localities,  according  to  natural  advantages, 
such  as  nature  of  soil,  climate,  proximity  to 
sources  of  supply,  etc. 

And,  first,  in  regard  to  rails.  Natural  deterio- 
ration of  this  kind  of  material  arises  from  rust. 
Other  classes  of  material  suffer  from  more  acute 
causes.  But  in  the  case  of  iron,  oxidation  is  the 
great  enemy  to  contend  with.  Deterioration 
from  this  cause  is  much  greater,  in  some  locali- 
ties, than  in  others.  The  damage,  for  instance, 
is  greater  near  salt  water  than  elsewhere. f 
Ability  of  rails  to  resist  the  effects  of  climatic 
influences  depends  upon  location.  We  have, 

*  These  heads  and  the  relation  they  severally  bear  to  each 
other  may  be  stated,  approximately,  as  follows: 

PER  CENT. 

New  Rails  (less  value  of  old) 10.13 

Handling  Rails  (i.  e.,  laying  the  new  and  taking  up  the  old) 2.34 

Ties ' 13.97 

Handling-Ties 6.18 

Miscellaneous  (general)  Repairs,  Roadway  and  Track 62.38 

100.00 

f  It  is  also  great  in  tunnels.  The  durability  of  ties  is  also 
less  in  tunnels  than  elsewhere. 

(272) 


MAINTENANCE  OF  TRACK. 


273 


unfortunately,  no  accurate  data  as  to  percentage 
of  deterioration  from  climatic  causes.  It  is  a  ques- 
tion about  which  metallurgists  have  collected 
little  definite  information.  Steel  is  less  able  to 
resist  rust  than  iron. 

The  deterioration  of  metal  from  oxidation  is 
not  uniform,  but  proceeds  Avith  increased  mo- 
mentum as  the  cause  of  decay  deep- 
ens and  spreads,  each  new  inroad 
affording  an  additional  storehouse 
in  which  the  destructive  elements 
multiply  and  extend  themselves. 
The  increase  in  the  destructive 
power  of  rust  may  be  likened  unto 
the  cumulative  malignancy  of  a 
cancer.  As  it  grows  wider  and 
deeper  it  destroys  the  fiber  and  ab- 
sorbs the  tissues  of  the  body,  in- 
creasing in  intensity  with  what  it 
feeds  upon,  until  the  object  at- 
tacked is  no  longer  able  to  with- 
stand the  slightest  strain. 

Oxidation  is  obviated  by  the  exclusion  of  damp- 
ness. This  would  not  be  necessary  if  the  article 
could  be  preserved  free  from  abrasion  or  contact 
with  surrounding  objects;  for  while  dampness  is 
the  propelling  or  primary  cause  of  rust,  it  is  not 
operative  except  in  case  of  abrasion  of  the  metal, 
or  its  contact  with  some  particle  of  matter. 
Either  of  these  precipitates  vapor  by  rendering 
condensation  of  moisture  possible,  thus  inducing 
oxidation.  Wherever  there  is  a  scratch  upon  a 

18    Vol.   3 


Bull-Headed  Rail. 


274     FINANCING,  CONSTRUCTING,  MAINTAINING. 


piece  of  metal,  or  wherever  a  particle  of  dust 
(however  invisible  to  the  naked  eye)  adheres  to 
it,  there  moisture  collects,  evaporation  ensues 
and  rust  is  engendered.  An  abrasion,  or  particle, 
affords  a  vantage  ground  for  the  retention  of 
moisture.  From  this  vapor  arises,  precipitating 
the  conditions  described.  It  is  believed  that  rails 
in  actual  use  suffer  less  from  rust  than  those  not 

in  use.  The  fric- 
tion of  the  wheel 
polishes  the  surface 
of  the  rail,  while 
the  vibration  of 
passing  trains  pre- 
vents the  retention 
of  moisture.  Pro- 
fessor Carhart,  in 
answering  a  ques- 
tion in  regard  to 

the  destructive  tendency  of  rust  and  the  length 
of  time  a  rail  will  resist  its  effects,  says:  "It  is 
well  known  that  a  polished  iron  or  steel  surface 
does  not  rust  so  soon  as  a  rough  surface  when 
exposed  to  the  same  conditions.-  Rough  lines  and 
sharp  points  appear  to  serve  as  nuclei,  about  which 
water  condenses.  Moist  air  when  expanded  sud- 
denly precipitates  its  vapor  as  a  cloud,  if  dust  is 
present  to  furnish  centers  of  condensation.  Frost 
crystals  form  first  along  scratches  on  glass.  So 
moisture  appears  to  condense  more  quickly  and 
freely  on  a  rough  surface  of  iron  than  on  a  clean 
polished  one.  Rusting  takes  place  only  in  the 


Box  Rail. 


MAINTENANCE  OF  TRACK. 


275 


Stevens  Rail,  Great  Western  Railway  of  Eng- 
land (Longitudinal  System),  A.D.  1858. 


presence  of  mois- 
ture. A  clean  plate 
in  dry  air  never 
rusts.  Mixtures  of 
explosive  gases  do 
not  explode  when 
the  electric  spark 
passes,  unless  va- 
por of  water  is 
present.  When  a 
metal  surface  is 
once  covered  with 

rust,  the  rusting  proceeds  much  more  rapidly 
than  at  first,  because  the  rust  is  hydroscopic ; 
moisture  is  taken  up  and  conducted  inward  to- 
ward the  metal ;  hydratic  oxides  of  iron  are  thus 
formed,  and  fresh  metal  underneath  is  attacked 
because  of  the  presence  of  moisture  or  of  the 
hydratic  oxides  on  the  outside.  A  coat  of  iron 
rust  hastens  the  rusting  process  except  when  the 
metal  is  coated  with  the  black  oxide  of  iron.  It 
can  then  be  exposed  to  any  weather  without 
rusting.  But  the  black  oxide  is  formed  only  at 
#  high  temperature.  The  scales  that  fall  from 
the  rails  as  they  come  from  the  rolls  are  largely 
black  oxide  of  iron." 

In  a  climate  such  as  we  are  treating  of,  it  is 
probable  that  fifty  years  of  exposure  would  ren- 
der a  rail  unsafe  for  use.  If  this  is  so,  the  deteri- 
oration from  natural  causes  is  two  per  cent, 
annually.  With  a  moderate  traffic  the  average 
period  of  usefulness  of  a  Bessemer  steel  rail  is 


276     FINANCING,  CONSTRUCTING,  MAINTAINING. 

fourteen  and  six-tenths  years.  It  is  probable 
(for  the  reasons  we  have  already  specified)  that  a 
rail  will  last  longer  under  mild  usage  than  if  not 
used  at  all,  provided  its  strength  is  commensu- 
rate with  the  load. 


Wood's  Rail  Frog,  New  Jersey,  A.  D. 


Under  ordinary  usage,  the  rapid  deterioration 
of  rails  is  occasioned  by  the  speed  of  trains. 
Speed  not  only  intensifies  the  friction,  but  in- 
creases the  weight  through  its  centrifugal  force. 


MAINTENANCE  OF  TRACK.  277 

Inquiries  in  regard  to  the  percentage  of  decay 
of  rails  from  natural  causes  elicit  extraordinary 
differences  of  opinion.  They  serve  to  show  how 
little  attention  the  subject  has  received  from 
practical  men.  In  some  cases  deterioration  is 
ascribed  wholly  to  traffic.  The  highest  rate 
ascribed  by  anyone  to  climatic  causes  was  fifty 
per  cent.  In  considering  the  deterioration  of 
rails  from  natural  causes,  the  damage  would  not, 
as  already  stated,  be  the  same  relatively  for  rail- 
roads doing  a  great  business  that  it  would  in  the 
case  of  those  doing  a  small  business.  When  a 
rail  is  worn  out  quickly,  relative  deterioration 
from  rust  is  not  nearly  so  great,  though  it  is 
undoubtedly  weakened  from  this  cause,  especially 
where  defects  of  any  kind  exist  as  receptacles  for 
moisture.  Herein,  undoubtedly,  lies  the  secret 
of  the  sudden  and  inexplicable  collapse  of  rails 
that,  according  to  the  law  of  averages,  should  last 
many  years. 

Just  what  the  difference  of  deterioration  from 
climatic  causes  between  a  rail  in  use  and  a  rail 
not  in  use  is,  is  not  known.  In  answer  to  in- 
quiries on  this  subject  one  writer  says:  "I  do 
not  know  how  long  rails  would  be  effective  for 
fast  running  trains  if  laid  down  and  not  used,  but 
will  allow  a  hundred  years;  a  track  that  is  used 
would  last  about  ten  years."  Another  writer 
says:  "The  expense  of  maintaining  rails  is 
almost  exclusively  dependent  on  the  traffic.  If 
entirely  idle,  the  loss  by  rust  would  be  con- 
siderable in  rails  by  weakening  the  fiber  of  the 


278     FINANCING,  CONSTRUCTING,  MAINTAIN  I. \  '<•. 

metal,  and  causing  rapid  wear  and  breakage 
when  again  brought  in  use.  Under  ordinary  con- 
ditions ninety-five  per  cent,  is  due  to  traffic." 
Another  writer  says:  "There  would  be  a  slow 
destruction  of  rails  from  rust,  which  might  take 
off  three  or  four  per  cent,  of  the  expense  charge- 
able to  traffic."  Another  writer  says:  "If  no 
trains  were  run  there  would  be  no  wear  of  rails, 
except  such  as  might  be  incident  to  the  action  of 
the  elements.  A  rail  laid  in  track  twenty-four 


Wooden  Joint  Block,  New  Jersey  Railroad,  A.  D.  1860. 

years  would  deteriorate  from  rust  to  such  an  ex- 
tent as  to  necessitate  renewal  in  order  to  put  the 
track  in  first-class  condition."  An  authority  upon 
the  subject  says:  "The  average  life  of  sixty-four 
rails  we  are  studying,  on  the  supposition  that 
they  are  worn  out  when  they  have  lost  eight 
pounds  per  yard,  and  that  the  yearly  tonnage  is 
eight  million  tons,  is  thirteen  years.  If  we  are 
able  to  obtain  steel  rails  as  good  in  quality  as 
thirty-two  slower  wearing  rails  we  have  under 
test,  the  average  life  would  be  almost  twenty 


MAINTENANCE  OF  TRACK.  279 

years."  The  roadmasters,  in  their  meeting  of 
1884,  state  that  "  The  average  life  of  a  steel  rail 
may  be  taken  at  nine  years."  The  source  of  in- 
formation is  not  stated,  but  the  duration  of  the 
rail,  it  will  be  noticed,  is  very  much  less  than  is 
generally  given  and  is  too  small  except  for  roads 
doing  an  unusually  heavy  business. 

From  numerous  inquiries  extending  over  a 
large  area  of  country,  and  addressed  to  practical 
men  actively  engaged  in  the  care  and  main- 
tenance of  track,  I  find  that  they  estimate  the 
average  deterioration  of  rails  from  natural  causes 
in  the  lake  region  of  the 
United  States  at  about  seven 
and  a  half  per  cent. ;  at  in- 
terior points  less,  not  exceed- 
ing two  per  cent.  One  piece 
of  rail  that  has  been  in  use 
thirty  years  was  submitted 
to  an  expert  in  such  mat- 
ters.* He  says:  "The  rough- 
ness of  the  surface  indicates 
that  some  inroads  have  been 
made  upon  its  integrity.  The  fracture  recently 
made  reveals  a  highly  fibrous  texture  of  the  iron. 
I  do  not  detect  much  evidence  of  granular  or 
crystalline  structure.  The  iron  left,  therefore,  is 
in  good  physical,  or  perhaps  molecular,  condition 
to  do  service."  The  metals  used  by  a  railway 
outside  of  its  track  suffer  from  the  same  general 
causes  as  iron  and  steel  rails. 

*  Professor  Carhart. 


280     FINANCING,  CONSTRUCTING,  MAINTAINING. 


Next  in  order,  in  connection  with  the  fixed 
expenses  of  maintaining  the  track  of  a  railroad, 
we  may  consider  the  question  of  ties.  The  cost 
of  this  item  is  great  and  exceptional.  No  class 
of  material  used  by  railroads  suffers  so  greatly 
from  the  action  of  the  elements.  No  matter  how 
favorably  placed,  as  regards  quality  of  ballast, 
deterioration  is  noticeable  and  rapid.  The  kind 
of  wood  and  how  seasoned  influence  perceptibly 
its  duration  and  usefulness.  Quality  and  arrange- 
ment of  ballast  have  much  to  do  with  the  preser- 
vation of  the  tie  from  decay.  But  ballast  is 
intended  to  serve  several  other  necessary  pur- 
poses besides  acting  as  a  filter  to  protect  the  tie 
from  dampness.  It  serves  to  increase  the  bearing 
surface  of  the  tie,  strengthen  the  roadbed, 
increase  the  elasticity  of  the  latter  and  render  it 
more  uniform. 

Broken  stone  and  slag  are  the  kinds  of  mate- 
rial most  useful  for  preventing  the  decay  of  ties. 
Next  in  order  are  cinders, 
gravel  and  sand.  The  ex- 
pense of  handling  ties  (i.  e., 
replacing)  is  much  greater 
where  slag  or  broken  stone 
is  used,  on  account  of  the 
difficulty  of  removal,  in- 
cluding labor  of  readjust- 
ment. This  disadvantage 
is,  however,  more  than 
compensated  by  the  great 
advantages  of  such  mate- 


MAINTENANCE  OF  TRACK.  281 

rial.  Where  soil  or  clay  is  used,  the  interior  of 
the  tie  oftentimes  rots  before  it  is  injured  by  the 
weight  of  the  traffic.  Where  the  business  of  a 
line  is  heavy,  ties  receive  material  harm  from 
respiking  and  resetting  of  rails,  and  if  of  inferior 
wood  are  frequently  cut  down  and  split  by  the 
rail.  Ties,  if  properly  ballasted,  receive  little 
detriment  from  the  wear  and  tear  of  light  traffic, 
except  upon  curves. 

The  natural  duration  of  a  tie  is  dependent  upon 
the  kind  of  wood  of  which  it  is  made,  how  it  is 
seasoned,  nature  of  climate,  and  quality  of  the 
ballast  in  which  it  is  laid.    All  these  must  be 
considered   in   arriving  at  a  result.     The  most 
serviceable  tie  that  we  have  for  all  conditions  of 
use  is  white  oak.    It  is  able  to  sustain  a  great 
load,  and  affords  very  satis- 
factory   resistance    to    the 
elements. 

Results  of  inquiries  made 
of  practical  men  in  refer- 
ence to  the  duration  and 
value  of  ties,  while  exceed- 
ingly interesting,  are  not 
altogether  satisfactory,  for 
the  reason  that  the  premises 
upon  which  they  base  their 
conclusions  are  nowhere  A.D. isee. 

the  same.     This  difficulty, 
however,  besets  the  student 
at  every  turn  in  attempting  to  arrive  at  general 
conclusions  from  isolated  instances.    One  writer 


I- 


282     FINANCING,  CONSTRUCTING,  MAINTAINING. 


says:  "A  tie  will  last  about  seven  years.  With- 
out traffic,  it  would  probably  last  ten  years.  Cedar 
ties  would  not  last  as  long  with  traffic  as  oak,  but 
without  traffic,  would  last  longer.  The  life  of  a 
hemlock  tie  would  not  be  as  long  with  or  without 
traffic."  Another  writer  says:  " Thirty  per  cent, 
should  be  charged  to  traffic  account  for  damage 
by  rails  cutting  into  the  tie  and  injury  arising 
from  driving  and  pulling  of  spikes,  rendered  nec- 
essary in  changing  rails  and  regauging  the  track." 
The  greatest  ignorance  exists  here,  as  elsewhere, 
among  so-called  experts.  Thus,  one  writer  says: 
"A  tie  will  last  just  as  long  in  a  track  that  is 
operated  as  it  will  in  a  track  that  is  not  operated." 
Another  writer  of  unusual  intelligence  says: 
"Natural  decay  of  ties  ballasted  with  the  best 
material,  such  as  broken  stone,  gravel  or  cinders, 
would  be  much  less  than  where  poor  ballast  was 
used.  I  should  think  twenty-five  per  cent,  less, 
as  a  tie  would  lie  perfectly  undisturbed  and  dry, 
and  would  not  be  cut  into  by  the  rail.  In  poor 
ballast,  such  as  soil  and  clay,  the  middle  of  the 
tie  would  decay  before  its 
surface  was  damaged." 

The  relative  deterioration 
of  ties  from  natural  causes 
and  from  wear  and  tear  is 
dependent  upon  so  many 
contingencies  that  estimates 
for  particular  properties 
would  not  apply  generally. 
A.  a  lees.  However,  it  is  probable  that 


MAINTENANCE  OF  TRACK.  283 

the  expense  of  maintenance  for  ties  in  a  tem- 
perate climate  cannot  be  far  from  seventy  per 
cent.,  leaving  thirty  per  cent,  as  chargeable  to 
wear  and  tear  of  traffic.  The  greatest  differ- 
ence of  opinion  exists  among  practical  men  as 
to  the  damage  arising  from  decay  and  wear  and 
tear,  respectively,  one  writer  insisting  that  no 
portion  of  cost  of  maintenance  should  be  charged 
to  traffic,  while  another  not  only  insists  that  the 
tie  is  injured  by  the  weight  of  passing  trains 
and  changing  of  spikes,  but  that  the  movement 
of  passing  trains  loosens  the  soil  enveloping  the 
tie,  thus  greatly  hastening  its  decay. 

I  have  not  attempted  in  the  foregoing  to  dis- 
cuss the  question  of  railway  ties  except  in  its 
simpler  aspects.  The  various  questions  as  to  the 
best  and  most  economical  tie  are  referred  to 
elsewhere  herein.  The  subject  grows  each  year 
more  and  more  important  to  railways  and  to  the 
public.  The  great  cost  of  wood  ties,  the  destruc- 
tion of  timber  their  use  engenders,  the  ever 
increasing  difficulty  of  procuring  those  of  a  suit- 
able nature,  render  it  more  and  more  important 
each  year  that  their  durability  should  be  increased 
or  that  a  substitute  should  be  found  to  take  their 
place.  To  those  who  are  interested  in  the  sub- 
ject— and  all  who  are  interested  in  economic 
subjects  are  thus  interested — I  beg  to  refer  to 
what  is  said  elsewhere  in  regard  to  the  timber 
supply  and  its  preservation,  the  qualities  of  wood 
best  adapted  for  ties,  how  the  duration  of  wood 
ties  may  be  prolonged  by  preservative  processes, 


284     FINANCING,  CONSTRUCTING,  MAINTAINING. 


and  the  experiments  that  have  been  made  with 
metal  ties. 

The  cost  of  repairs  and  renewals  of  roadway 
and  track,  outside  of  the  cost  of  rails  and  ties, 
is  made  up  largely  of 
labor.  In  the  appendix 
hereto  will  be  found  a 
table  of  expenses,  clas- 
sified under  appropriate 
headings.*  This  classi- 
fication was  the  result 
of  many  years  of  care- 
fully collated  statistics 
upon  many  hundred 
miles  of  railways,  cov- 
ering many  millions  of  dollars.  It  is,  so  far  as 
it  goes,  conclusive  for  the  great  lake  region  of 
America. 

The  general  repairs  of  roadway  and  track  em- 
brace all  classes  of  material  used  in  connection 
with  the  track,  save  rails  and  ties,  including  ballast, 
and  the  tools  and  supplies  of  trackmen.  The 

*  Appendix  B.  While  the  matter  is,  perhaps,  not  strictly 
germane,  it  is  proper  to  refer  the  reader  here  to  the  classifica- 
tion of  track  material  and  labor  embraced  in  the  book  "  Dis- 
bursements of  Railways."  The  track  accounts  of  railways  are 
the  most  difficult  of  all  to  keep,  because  of  the  limited  facilities 
possessed  by  those  who  have  charge  of  such  work.  Detailed 
information  in  reference  to  track  expenditures  is,  upon  many 
roads,  very  meager.  Yet  an  effective  system  of  track  accounts 
is  necessary  to  economical  and  effective  management.  It  plays 
a  most  important  and  necessary  part,  I  do  not  pretend  to  say 
that  the  system  of  accounts  referred  to  is  the  best;  it  is,  how- 
ever, simple,  economical,  easily  kept,  and  affords  a  graphic 
account  of  the  divisions  of  track  expenses. 


MAINTENANCE  OF  TRACK.  285 

material  embraced  under  this  head  is  quite  as 
quickly  and  vitally  affected  by  wear  and  tear  as 
rails  or  ties.  Bolts,  spikes,  splicebars  and  nuts 
receive  marked  and  rapid  deterioration  from  both 
climate  and  traffic,  while  the  tools  used  by  track- 
men (and  they  comprise  a  considerable  list)  are 
quickly  consumed.  The  account  known  as  gen- 
eral repairs  of  roadway  and  track  embraces 


Joint  Fixture  used  on  Western  railroads,  A.  D.  1869. 

various  classes  of  material,  and  includes  cost  of 
surfacing  track,  ditching,  drainage,  freshet  re- 
pairs, track  watchmen,  clearing  track  of  snow, 
and  removing  weeds,  brush  and  grass. 

An  examination  of  the  different  expenses  of 
roadway  and  track  elicits  the  fact  that  a  large 
proportion  of .  them  is  directly  chargeable  to 
traffic.  The  expense  is  increased,  moreover,  by 


286     FINANCING,  CONSTRUCTING,  MAIXTAIXIXO. 


the  fact  that  the  traffic  of  a  line  greatly  inter- 
feres with  repairs  and  renewals.  The  necessity 
of  the  work  being  carried  on  without  reference  to 
weather  or  the  accommodation  of  business  adds 
greatly  to  cost.  The  added  expense  on  this 
account  is  much  greater  than  those  not  familiar 
with  the  work  would  suppose.  Safety  regards 
neither  convenience  nor  economy.  An  occasion 
arises  and  it  must  be  met,  no  matter  how  great 
the  waste  involved.  The  significance  of  this  is 
startling,  even  to  railway  men.  Work  is  carried 
on  upon  the  track  in  every  instance  at  a  disad- 
vantage, and  in  many  cases  involves  large  expense 
over  what  would  be  necessary  if  it  could  be  pur- 
sued with  reference  to  the  economical  use  of 
labor  and  material. 

The  most  surprising  diversity  of  opi  nion  exists 
I  find,  among  trackmen  as  to  the  proportion  that 
is    chargeable    to    fixed    ex- 
penses   of    maintenance    of 
roadway  and  track.     This  is 
due  in  part  to  the  peculiar 
circumstances   that    attend 
such  expenditures.    It  arises 
also  from  differences  in  con- 
ditions and  cost  in  different 
localities.    The  superintend- 
ent   or    roadmaster    whose 
track  is  well  ballasted  with  broken  stone  or  slag, 
if  asked  as  to  the  cost  of  its  maintenance,  or  the 
relative  wear  and  tear  of  ties,  or  the  duration 
of  the  ballast,  will  return  an   answer  entirely 


MAINTENANCE  OF  TRACK. 


287 


different  from  that  of  the  official  whose  road  is  bal- 
lasted with  sand  or  common  soil.  The  effect  of 
this  local  coloring  must  be  kept  in  mind  in  any 
attempt  to  arrive  at  general  conclusions  about 
railroads.  People  speak  of  things,  not  as  they 
are  commonly,  but  as  they  see  them  from  day  to 
day.  No  one  is  superior  to  influences  of  this 
nature,  and  but  few,  even  among  the  most 
thoughtful,  rise  wholly  above  them. 

As  already  stated,  the  relation  of  fixed  expenses 
for  maintenance  to  traffic  expenses  is  governed 
largely  by  the  amount  of  business.  Wear  and 
tear  increases  with  use,  but  expenses  arising 
from  decay  are  not  materially  heightened  on 
this  account,  except  in  the  case  of  rolling  stock. 
I  do  not  wish  to  be  understood  as  saying  that 
while  wear  and  tear  increase  with  business,  the 
cost  of  repairing  increases  in  a  like  ratio.  On 
the  contrary,  it  is  relatively  cheaper  to  maintain 
a  track  with  the  maximum  amount  of  business 
than  with  the  minimum  amount,  for  the  reason 
that  it  permits  concentration  of  work  within 
narrower  limits. 

In  the  operation  of  prop- 
erties, deterioration  is 
oftentimes  due  largely 
to  traffic;  in  other  cases, 
almost  wholly  to  natural 
causes.  The  intervening 
gradations  are  infinite  in 
detail  and  complexity.  In 
classif y i ng  expenses  for 


288     FINANCING,  CONSTRUCTING,  MAINTAINING. 


•ditching,  freshet  repairs,  and  removing  snow, 
weeds,  brush  and  grass,  however,  we  are  not 
beset  by  any  difficulties.  The  movement  of 
traffic  has  nothing  to  do  with  the  filling  up  of 
ditches  or  the  growth  of  vegetation.  The  move- 
ment of  trains  does  not  materially  affect  the 
cost  of  ditching  or  removing  snow,  weeds,  brush 
and  grass.  In  some  cases  it  increases  the  cost, 
in  other  cases  the  work  is  assisted  thereby. 
However,  the  cost  of  repairing  damages  by 
freshets  is  greatly  increased  by  movement  of 
trains,  because  of  the  urgency  of  the  work  and 
the  inconvenience  attending  it.  The  expense 
of  keeping  a  track  free  from  snow  and  ice  under 
normal  conditions  is  lessened  by  the  movement 
of  trains.  Except  for  such  fortuitous  help,  cuts 
would  in  many  cases 
soon  fill  up  with  snow, 
which,  through  the  alterna- 
tion of  heat  and  cold,  would 
turn  to  ice,  rendering  re- 
moval both  expensive  and 
tedious.  The  movement  of 
trains,  with  slight  assist- 
ance from  trackmen,  as  a 
rule,  keeps  these  cuts  open. 
The  movement  of  trains 
from  day  to  day  also  less- 
A.  D.  i87o.  ens  the  expense  of  keeping 

a  track  free  from    weeds, 
brush    and    grass;    except 
for  the  continual   passage  of  trains   and   track 


MAINTENANCE  OF  TRACK. 


289 


forces,  these   obstructions  would   quickly  block 
the  road.* 

Another  important  item  of  track  expense  is  the 
cost  of  watchmen.  This  is,  however,  wholly 
chargeable  to  traffic,  for,  while  they  perform  an 
important  and  necessary  duty,  they  would  not  be 
necessary  except  for  the  passage  of  trains. 

In  the  inquiries  I  have  had  occasion  to  make  in 
regard  to  expenses  connected  with  the  mainte- 
nance of  track,  the  marked  intelligence  of  those 
in  charge  of  work  of  this  kind,  and  the  purely 
speculative  knowledge  they  have  evinced  in  con- 
nection with  it,  have  been  apparent.  Thus,  in 
connection  with  the  expenses  connected  with 
snow,  one  writer  says:  "  To  keep  an  idle  road  in 
condition  so  that  business  might  be  done  at  any 
time,  would  require  that  a  snowplow  should  be 
used.  The  clearing  off  of 
snow  also  causes  the  track 
to  heave,  and  makes  shim- 
ming necessary."  Another 
writer  says :  "A  road  would 
not  be  in  first-class  shape  (if 
temporarily  closed  to  busi- 
ness), buried  under  six  feet 
of  snow,  and  yet  the  snow 
could  not  be  kept  off  at 
ordinary  expense  unless 
was  a  regular  train  service."  Another 


Plain  Splice  Bar. 


there 

*  I  remember  going  over  a  piece  of  road  in  the  eastern  part 
of  Dakota  in  1874  that  had  been  abandoned  for  some  time.  The 
train  consisted  of  an  engine  and  two  cars,  and  three  days  were 

19    Vol.  3 


290     FINANCING,  CONSTRUCTING,  MAINTAINING. 


roadmaster  says:  "Climatic  cause  is  the  largest 
source  of  expense,  as  we  should  have  to  keep  the 
track  free  from  snow  by  special  means  in  the 
absence  of  regular  trains." 

While  there  is  no  great  divergence  of  opinion 
in  regard  to  the  deterioration  of  roadway  and 
track,  there  is  the  greatest  diversity  of  opinion 
among  practical  men  as  to  the  proportion  charge- 
able to  climatic  causes  and  traffic,  respectively. 
With  more  reflection,  they  will  be  able  to  har- 
monize their  differences.  Men  experience  diffi- 
culty in  forming  an  opinion  as  to  the  relation 
natural  expenses  bear  to  traffic  expenses,  because 
of  the  fact  that  the  whole  is  primarily  due  to 
traffic.  Every  expense 
must,  of  course,  be  borne 
by  the  revenue  of  a  prop- 
erty, but  that  fact  does  not 
make  the  ascertainment 
of  the  source  of  the  ex- 
pense any  less  interesting 
or  less  valuable  to  its  pos- 
sessor. The  confounding 
of  forms  with  principles, 
however,  always  occasions 
more  or  less  confusion  in 


required  to  travel  eighty  miles.  The  weeds  and  grass  were 
from  six  inches  to  six  feet  in  height.  Everywhere  the  roadbed 
was  tunneled  with  the  burrows  of  jack  rabbits  and  squirrels. 
The  weeds  and  grass  rendered  the  track  so  slippery  that  it  was 
necessary  for  laborers  to  place  sand  and  gravel  on  the  rails  as 
we  proceeded.  Water  was  procured  with  the  aid  of  syphons 
from  ponds  along  the  road,  and  the  trestles  and  bridges  swayed 


MAINTENANCE  OF  TRACK.  291 

the  minds  of  inquirers  and  renders  them  liable 
to  decide  questions  according  to  preconceived 
notions.  It  is  in  consequence  of  this  that  in 
many  instances  those  especially  familiar  with  the 
operations  of  track  ascribe  an  undue  proportion 
of  expense  to  traffic.  In  attempting  to  arrive  at 
the  truth,  the  testimony  of  extremists  of  this 
kind,  it  is  apparent,  must  be  eliminated.  After 
doing  this,  I  find  that  the  differences  of  opinion 
among  practical  men  are  not  great.  According 
to  their  estimates  fifty-seven  per  cent,  of  the 
expenses  of  roadway  and  track, 
excluding  rails  and  ties,  is  con- 
sidered to  be  due  in  a  temperate 
climate  to  climatic  causes,  and 
forty-three  per  cent,  to  traffic. 
If  a  railroad  were,  therefore,  to 
cease  to  do  business,  it  would 
reduce  its  expenses  for  miscel-  STAN  MUD  og  1375, 
laneous  track  material  and 
tools  and  track  labor  forty-three  per  cent., 
unless  the  suspension  were  permanent,  or  likely 
to  extend  over  a  period  of  a  year  or  more. 
Fifty-seven  per  cent,  would  be  required  to  main- 
tain the  track  in  a  condition  to  resume  business 
at  any  time.  The  result  arrived  at  would  be  more 
trustworthy  if  we  knew  the  expense  for  track 
tools  separately  from  miscellaneous  track  mate- 
rial, but  with  this  knowledge  we  would  still  be 

under  the  weight  of  the  train  like  trees  in  a  tempest.  When 
eventually  this  particular  piece  of  track  was  opened  for  busi- 
ness, it  was  found  necessary  to  rebuild  it  entirely,  although  the 
abandonment  had  only  extended  over  a  period  of  five  years. 


292     FINANCING,  CONSTRUCTING,  MAINTAINING. 


unable  to  determine  what  proportion  of  deteri- 
oration of  tools  was  due  to  natural  and  traffic 
expenses,  respectively. 

One  obstacle  in  the  way  of  a  separation  of  nat- 
ural and  traffic  expenses  is  the  difficulty  of  deter- 
mining the  proportion  of  the  expense  of  ballasting, 
surfacing,  tamping,  etc.,  due  to  the  weight  and 
movement  of  trains  apart  from  the  damage  occa- 
sioned by  natural  causes. 

Next  in  order  comes  the  cost  of  maintenance 
of  bridges,  culverts  and  cattle  guards.  In  con- 
nection with  these,  it  is  apparent  that  expendi- 
ture is  largely  dependent  on  the  nature  of  the 
structure  and  the  quality  of  material  used.  Man- 
ifestly a  wooden  bridge  will  decay  much  more 
rapidly  than  one  of  stone  or  steel.  A  large  per- 
centage of  the  expense  of 
renewing  wooden  bridges 
is  due  to  climatic  causes. 
Decay  is  accelerated  by 
the  opening  of  the  fissures 
in  the  material  and  the 
straining  of  the  fiber  of 
the  wood  caused  by  the 
^  weight  of  passing  trains. 
To  this  extent  damage  is 
chargeable  to  traffic.  Repairs  and  renewals  oc- 
casioned by  the  wear  and  tear  of  traffic  are,  gen- 
erally speaking,  proportionate  to  the  business 
done.  This  truth  finds  illustration  in  the  expe- 
rience of  every  bridge  builder.  He  quickly  dis- 
covers that  expenses  for  repairs  where  traffic  is 


MAINTENANCE  OF  TRACK. 


293 


great  are  much  larger  than  where  traffic  is  small. 
This  is  so  marked  as  to  be  a  constant  subject  of 
notice.  Where  business  is  small  great  economy 
is  possible,  permitting  the  use  of  bridges  that 
would  not  answer  at  all  where  traffic  was  great. 

The  duration  of  an  iron  or  steel  bridge  cannot 
be  determined  in  advance,  as  the  extent  to  which 
the  strain  upon  the  metal  will  affect  its  fiber  and 
weaken  its  strength  cannot  be  estimated.  The 
accidents  arising  from  the  breaking  down  of  iron 
and  steel  bridges,  apparently  stable,  make  it  ap- 
parent, however,  that  the  material  of  which 
they  are  composed  suffers  deterioration  from  the 
start.  The  damage  that  arises  from  use,  what- 
ever it  may  be,  is,  of  course,  chargeable  to  traffic. 

The  relation  that  the  track  and  the  bridges  and 
culverts  of  a  line  bear  to  each  other,  and  the  dif- 
ference in  degree 
to  which  they  re- 
spond to  the  ac- 
tion of  frost  and 
kindred  causes, 
render  their  ad- 
justment a  source 
of  constant  e  x  <• 
pense  and  anxi- 
ety. Not  only  is 
alignment  differ- 
ent, but  they  do  not  settle  or  rise  uniformly. 
The  jar  and  weight  of  trains  affect  bridges  and 
culverts  so  perceptibly  as  to  continually  require 
their  readjustment.  The  expense  of  preventing 


Angle  Splice  Bar. 


294     FINANCING,  CONSTRUCTING,  MAINTAINING. 


the  channel  under  or  above  these  structures  from 
becoming  obstructed  and  damaged  by  freshets 
also  constitutes  a  fixed  charge  for  maintenance. 
Experts  place  the  duration  of  wooden  bridges, 
under  a  light  traffic,  at,  approximately,  eleven 
years.  The  life  of  an  iron  or  steel  structure  is 
much  longer.  The  expense  of  protecting  iron 
and  steel  structures  is  said  to  be  much  greater 
than  for  wooden  bridges. 

In  the  case  of  a  stone-arched  culvert,  the  mate- 
rial of  which  is  of  durable  quality,  properly  laid, 
and  of  sufficient  strength,  expense  from  natural 
decay  is  merely  nominal.  The  expense  for  re- 
pairs and  renewals  of  bridges  and  culverts  arising 
from  natural  causes  depends  upon  the  climate, 
the  nature  of  the  structure,  the  care  expended 
upon  it,  and  the  volume  of  traffic;  taking  the 
railway  system  in  its  entirety,  it  is  probable  that 
the  annual  expense  occasioned  by  natural  causes 
is  in  the  neighborhood  of  seventy-five  per  cent. 
My  investigation  in  re- 
gard to  these  structures 
has  extended  over  many 
miles  of  road.  There  is 
little  difference  of  opinion 
as  to  the  relative  expense 
for  maintenance  from 
natural  causes  and  traffic. 
The  percentage  I  give  is 
that  of  experts.  However, 
whatever  the  percentage 
of  expense  due  to  climatic  influences  is,  it  will 


MAINTENANCE  OF  TRACK.  295 

grow  less  relatively  in  every  instance  with  in- 
creaie  of  traffic  and  improvement  in  quality  of 
structure.  Some  of  the  communications  I  have 
received  on  this  subject  are  exceedingly  interest- 
ing. Thus,  one  writer  says:  "A  bridge  will  lie 
still  all  summer,  but  as  soon  as  winter  sets  in  it 
is  all  out  of  shape.  It  heaves  by  frost  up  and 
down  and  sideways  and  out  of  line,  causing  it  to 
be  cut  down,  shimmed  and  respiked.  Wooden 
bridges  are  very  short  lived,  their  life  being  ten 
or  twelve  years.  Traffic  affects  them  a  little  by 
shaking."  Another  writer  says:  "The  relative 
expense  depends  upon  whether  the  bridges  are 
built  of  iron  or  wood;  whether  heavy  or  light 
structures,  if  of  wood.  If  light,  they  will  dete- 
riorate more  rapidly  under  moving  trains  because 
the  timber  will  spring,  disturbing  the  fiber  and 
opening  the  grain  for  the  admission  of  water, 
thereby  causing  decay."  Another  writer  says: 
"I  notice  that  the  cost  is  much  greater  upon  some 
lines  than  upon  others.  It  is  partly  attributable 
to  the  difference  in  traffic.  The  bridges  that  we 
use  where  the  traffic  is  light  and  that  we  derive 
good  service  from  would  not  answer  at  all  where 
the  business  was  great." 

Of  the  multitudinous  details  incident  to  the 
construction  and  maintenance  of  railroads,  no 
phase  of  the  subject  interests  the  inquirer  more 
than  that  connected  with  bridges.  The  feat  of  car- 
rying a  track  safely  and  economically  across  the 
streams,  canons  and  valleys  that  beset  its  course 
is  ever  a  matter  of  interest.  The  maintenance  of 


296     FINANCING,  CONSTRUCTING,  MAINTAINING. 

a  bridge  does  not  involve  special  knowledge,  but 
its  construction  and  development  have  elicited 
the  thought  and  life  labor  of  many  eminent  men. 
Yet,  it  is  probable  that  in  this  field,  as  in  others, 
the  great  advances  made  are  only  precursors  of 
others  yet  to  come. 


Angle  Splice  Bar. 

The  technicalities  of  structures  and  their  main- 
tenance do  not  properly  find  a  place  in  a  book  of 
this  kind.  They  are  to  be  sought  in  the  works 
of  engineers.  Many  volumes  have  been  written 
on  the  subject.  But  while  I  cannot  take  it  up  in 
detail,  I  may  be  pardoned  if  I  quote  here  what  an 
eminent  engineer*  has  said  in  regard  to  the 
development  of  the  art  of  bridge  construction 
and  the  experiences  of  American  railroads  in  this 
direction.  It  falls  into  line  directly  with  our 
subject.  He  says  :  "In  the  early  history  of  rail- 
ways in  Europe,  substantial  viaducts  of  brick 
and  stone  masonry  were  generally  built;  and  in 

*  John  Bogart. 


MAINTENANCE  OF  TRACK.  297 

this  country  there  are  notable  instances  of  such 
constructions.  In  this  country  the  wooden  bridge 
has  been  an  important — in  fact,  an  essential — 
element  in  the  successful 
building  of  our  railways. 
Timber  is  also  used  exten- 
sively in  railroad  construc- 
tion in  the  form  of  trestles. 
.  .  The  fundamental  idea 
of  a  bridge  is  a  simple  beam 
of  wood.  If  metal  is  substi- 
tuted, it  is  still  a  beam  with 
all  superfluous  parts  cut 
away.  The  result  is  what  is 
called  an  I  beam.  When  greater  loads  have  to 
be  carried,  the  I  beam  is  enlarged  and  built  up  of 
metal  plates  riveted  together,  and  thus  becomes 
a  plate  girder.  These  are  used  for  all  short  rail- 
way spans.  For  greater  spans  the  truss  must  be 
employed.  .  .  .  Except  under  special  circum- 
stances of  location  or  length  of  span,  the  truss 
bridge  is  a  more  economical  and  suitable  struc- 
ture for  railway  traffic  than  a  suspension  bridge. 
The  advance  from  the  wood  truss  to  the  modern 
steel  structure  has  been  through  a  number  of 
stages.  Excellent  bridges  were  built  in  combina- 
tions of  wood  and  iron.  Then  came  the  use  of 
cast  iron  for  those  portions  of  the  truss  subject 
only  to  compressive  strains,  wrought  iron  being 
used  for  all  members  liable  to-  tension.  Many 
bridges  of  notable  spans  were  built  in  this  way. 
The  form  of  this  combination  truss  varied  with 


298     FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  designs  of  different  engineers,  and  the  spans 
extended  to  over  three  hundred  feet.  The  substi- 
tution of  wrought  for  cast  iron  followed.  The 
latest  step  has  been  made  in  the  use  of  steel,  at 
first  for  special  members  of  a  truss  and  latterly 
for  the  whole  structure.  The  art  of  railway 
bridge  building  has  thus,  in  a  comparatively  few 
years,  passed  through  its  ages  of  wood,  and  then 
of  iron,  and  now  rests  in  the  application  of  steel 
in  all  its  parts." 


Angle  Splice  Bar 

In  connection  with  the  maintenance  of  bridges 
and  culverts,  the  necessity  of  preventing  their 
injury  or  destruction  by  floods  is  an  incident  of  our 
subject.  The  expense  is  a  natural  one,  but  none 
the  less  real.  It  frequently  happens  in  practical 
experience  that  because  of  lack  of  skill  upon  the 
part  of  the  engineer,  or  on  account  of  undue 
economy,  sufficient  space  is  not  left  underneath 
the  bridge  or  culvert  to  carry  off  the  water.  In 
such  cases  the  proper  way  is  to  enlarge  the 
channel;  but  as  the  necessity  for  this  will  not  in 


MAINTENANCE  OF  TRACK. 


299 


every  case  be  apparent,  or  perhaps  practicable, 
the  course  left  for  those  in  charge  to  pursue  is  to 
see  that  the  watercourse  is  kept  free  from  ob- 
struction underneath  the  structure,  also  above  it, 
so  as  to  prevent  the  accumulation  of  rubbish 
which,  by  collecting,  will  choke  up  the  stream, 
and  thus  undermine  or  carry  away  the  structure. 

Expenses  attending  the  care  and  maintenance 
of  buildings  are  analogous,  in  many  respects,  to 
those  connected  with  bridges  and  culverts.  How- 
ever, these  expenses  are  not  uniform  upon  differ- 
ent railroads,  or  even  upon  the  same  lines.  They 
are  like  those  of  other  structures.  The  wear  and 
tear  of  machinery,  furniture,  implements  and  fix- 
tures used  in  and  about  buildings,  is  almost  wholly 
chargeable  to  traffic.  The  platforms,  doors  and 
windows  of  warehouses 
and  depots  are  also 
greatly  injured  from  this 
cause.  Imperceptible 
wear  and  tear,  and  at- 
tendant accidents  and 
mishaps  of  business,  oc- 
casion more  or  less  dam- 
age to  every  building,  as 
may  be  readily  supposed, 
but  its  extent  is  not  uni- 
form. 

The  nature  of  a  structure  has  much  to  do  with 
its  ability  to  resist  deterioration  from  natural 
causes;  but,  while  brick  and  stone  buildings  re- 
quire, relatively,  little  or  no  attention,  the  doors, 


300     FINANCING,  CONSTRUCTING,  MAINTAINING. 

windows,  roofs,  floors  and  other  appurtenances  of 
such  structures  require  constant  attention,  and 
the  cost  of  maintenance  is  not  materially  differ- 
ent from  that  of  other  buildings.  In  addition  to 
the  wear  and  tear  from  traffic  are  the  losses  from 
fires  chargeable  to  the  same  cause.  Outlay  ren- 
dered necessary  by  traffic  will  depend  upon  its 
nature  and  extent.  The -ability  of  a  structure  to 
resist  deterioration  is  largely  dependent  upon 
climate,  material  used  in  construction,  and  the 
care  with  which  the  structure  is  built;  but  dif- 
ferences are  not  so  great  that  we  cannot  deter- 
mine, with  reasonable  accuracy,  the  proportion 
chargeable  to  natural  causes. 

The  cost  of  maintenance  of  fences,  road  cross- 
ings and  signs  is  variable.  The  damage  arising 
from  fires  ignited  by  pass- 
ing trains  and  injuries  to 
crossings  are  about  the 
only  expenses  connected 
with  this  account  charge- 
able to  traffic.  It  is  ap- 
parent, however,  that  the 
damage  occasioned  by  fires 
will  be  extremely  variable. 
Where  fences  are  built  of 
wire  or  formed  of  hedges, 

the  expense  is  merely  nominal.  In  the  case  of 
wooden  fences,  it  is  fully  twenty-five  per  cent. 
As,  however,  the  use  of  wood  is  giving  place  to 
other  material,  this  estimate  possesses  no  practi- 
cal value. 


CHAPTER  IX. 

TRACK  DETAILS — SNOW  AND  ICE,  RAILS,  JOINTS, 
SPIKES,  SPLICE  BARS,  PLATES,  ALIGNMENT,  PRE- 
MIUMS AND  OTHER  MATTERS. 

The  maintenance  of  a  railway  involves  many 
things  beside  keeping  up  the  property.  A  proper 
organization  must  be  maintained.  Its  super- 
vision must  be  looked  after,  and  its  legal  rights 
maintained.  The  efforts  of  those  who  would 
destroy  its  usefulness  or  profitableness,  whether 
knowingly  or  ignorantly,  must  be  warded  off. 
The  property  must  be  kept  open  for  business. 
Nothing  must  be  allowed  to  interfere  with  the 
regular  routine  of  work,  neither  the  march  of 
contending  armies,  the  difficulty  of  getting  sup- 
plies, nor  the  complications  of  labor. 

It  is  the  duty  of  managers  to  look  after  the 
property  as  a  whole.  Howrever,  these  phases  of 
railway  maintenance  are  discussed  elsewhere.  It 
is  designed  here  to  treat  more  particularly  of  the 
physical  property  of  railways.  Its  maintenance 
involves  a  constant  struggle  with  the  elements; 
the  frosts  of  winter,  the  floods  of  spring,  the 
storms  of  summer.  Each  part  of  a  property  has 
its  peculiar  risks,  breakage,  decay,  fire,  heat, 
frost,  flood,  drought,  neglect,  lack  of  proper 

(301) 


302     FINANCING,  CONSTRUCTING,  MAINTAINING. 


understanding,  social  disorder  and  so  on.  Each 
must  be  looked  after,  must  be  especially  con- 
sidered. It  is  impossible  to  describe  the  vicissi- 
tudes of  railway  property  particularly.  The  most 
that  can  be  done  is  to  take  up  those  that  appeal 
to  us  as  matters  of  importance. 

The  keeping  up  of  a  railroad  implies  its  being 
kept  open.  This  is  not  the  least  of  the  difficul- 
ties that  beset  managers. 
In  the  tropics  excessive 
growth  of  vegetation  has 
to  be  overcome.  In  the 
north  frosts  and  snow  be- 
set the  property.  Many 
northern  companies  have 
great  difficulty  in  keeping 
their  roads  free  from  snow 
during  many  weeks  and 

Bethlehem  Iron  Company's  Rail,  »    ,-,  A  , 

"Meat  Yard"  Pattem,*i884.       months  or  the   year.     At 
one  time  it   was  not  an 

unusual  thing  for  a  road  to  be  closed  for  many 
weeks  each  year  because  of  the  impossibility  of 
keeping  it  free  from  snow  and  ice.  The  difficulty 
has  now  been  much  simplified  owing  to  the  use 
of  more  effective  snowplows,  and  the  construc- 
tion of  snow  sheds  and  fences  better  adapted  to 
their  purpose.  The  protection  of  railroads  from 
snow  has  received  much  attention  from  track- 
men, and  I  am  mainly  indebted  to  them  for  the 
information  I  have  on  the  subject. 

With  a  sharp  and  high  wind  snow  accumulates 
with  astonishing  rapidity  wherever  obstruction 


TRACK  DETAILS. 


303 


is  met  with.  Under 
other  circumstances  it 
does  not  drift  badly. 
Protection  of  the  track 
depends  much  upon  the 
temperature  and  the 
direction  and  velocity 
of  the  wind.  In  locat- 
ing snow  fences  they 
should  be  placed  at 
right  angles  with  pre- 
vailing winds.  Trees  afford  valuable  protection 
where  snow  sheds  are  impossible.  Of  these,  wil- 
lows and  similar  growths  that  may  be  planted 
compactly  are  the  best.  They  must,  however,  be 
located  at  a  distance  from  the  track.  Where  it 

is  necessary  to  de- 
pend upon  fences, 
as  many  should  be 
erected  as  neces- 
sary, the  first  one 
being  placed  one 
hundred  feet  from 
the  track,  the  next 
two  hundred,  and 
so  on.  It  would  be 
well  if  each  fence 
were  supplemented 
by  a  portable  fence;  when  the  snow  has  drifted 
to  the  top  of  the  permanent  fence,  the  portable 
structure  should  be  erected  thereon,  and  so  raised 
higher  and  higher  as  the  snow  accumulates. 


Angle  Splice  Bar. 


304     FINANCING,  CONSTRUCTING,  MAINTAINING. 

In  constructing  a  road  in  an  open  country  it  is, 
of  course,  desirable  to  avoid  cuts  as  much  as  pos- 
sible. When  it  is  necessary  to  depress  the  track, 
the  ground  on  either  side  should,  if  possible,  be 
cut  away  at  least  seventy  feet,  sloping  gradually 
to  a  foot  below  the  rail.  A  fence  should  be  eight 
feet  high  and  so  strongly  constructed  as  to  with- 


Steel  Tie,  London  &  Northwestern  Railway,  A.D.  1885. 

stand  the  most  violent  storm.  The  higher  it  is 
the  better.  With  these  precautions  a  company, 
with  the  aid  of  snowplows,  will  be  able  to  keep  its 
track  open  under  the  most  trying  circumstances. 
In  a  mountainous  country  only  snow  sheds  will 
answer.  Their  nature  will  depend  upon  the 
country.  On  some  roads  they  will  have  to  be 
built  so  as  to  protect  the  track  from  avalanches. 


TRACK  DETAILS. 


305 


They  must  be  strong  and  so  placed  as  to  carry 
the  snow  forward  and  over  the  track  without  im- 
pediment. In  the  majority  of  instances,  however, 
simple  snow  sheds  are  all  that  is  needed.  The 
question  of  the  protection  of  a  railroad  from  snow, 
it  will  thus  be  seen,  is  a  great  one.  Its  complete 
elucidation  will  be  a  work  of  time  and  experience. 

In  maintaining  the  property  of  railways,  nat- 
urally the  greatest  importance  attaches  to  the 
track.  This  is  the  artery  of  life,  the  vital  thread. 
If  not  effectively  maintained,  risk  and  disaster 
follow  as  certainly  as  a  weak  truss  or  other  defect 
in  a  bridge  precipitates  disaster.  Not  all  rail- 
ways are  maintained  at  the  same  standard,  nor,  of 
course,  do  different  railways  involve  similar  ex- 
penditures for  maintenance.  The  routine  that  is 
observed  upon  different  roads  is  substantially  the 
same. 

Smoothness  and  stability  of  track  and  freedom 
from  accident  are  never  the  result  of  chance,  but 
of  far-seeing  care  and  sagacity;  of  constant  in- 
spection and  tests.    It 
is  not  necessary  to 
wait  until  a  structure 
breaks  down  to  demon- 
strate its  weakness. 
The    mishap    may   be 
averted  by  timely 
action.  Herein  lies  the 
secret  of  the  security 
of  railway  travel.     If 


the  same  care  and  in- 

2O    Vol.  3 


506     FINANCING,  CONSTRUCTING,  MAINTAINING. 


telligence  were  exercised  in  the  maintenance  of 
the  highways  of  the  world  that  railways  observe, 
their  cost  would  not  be  one-third  what  it  is  to-day, 
while  they  would  be  an  ever-increasing  source  of 
profit  and  pleasure  to  mankind. 

Speaking  of  track  work,  an  authority  on  such 
matters*  says  that  the  province  of  labor  is  to 
make  the  track  stable,  and  to  securely  fasten  and 
unite  its  parts  so  as  to  prevent  independent 
motion.  Elasticity  of  bearing  does  not  imply 
loose  and  shifting  parts.  Flexibility  of  material 
must  not  be  confounded  with  yielding  and  inade- 
quate support.  The  impact  due  to  low  joints, 
bad  surface,  poor  line  and  defective  gauge  greatly 
augments  the  destructive  effects  of  increased 
wheel  pressure,  and  the  deterioration  of  track  is 
much  accelerated  when  deprived  of  proper  care. 
In  nothing  do  trackmen 
need  to  be  more  fully 
drilled  than  in  the 
matter  of  thorough 
and  conscientious 
track  work,  more  par- 
ticularly in  tamping  so 
that  the  track  may 
stand  the  service  to 
which  it  is  subjected. 
Thorough  track  work 
implies  tight  joints,  the  use  of  track  level,  true 
gauge,  and  conscientious  tamping  and  attention 
to  minor  details.  As  early  in  the  year  as  settled 

*  Mr.  Benj.  Keece. 


TRACK  DETAILS. 


307 


weather  will  permit,  every  section  gang  should 
be  increased  to  its  maximum  strength,  so  that 
the  work  of  renewals  may  be  completed  in 
time. 

Every  detail  connected  with  the  maintenance 
of  a  property  would  be  interesting  if  it  could  be 
so  generalized  as  to  come  within  our  comprehen- 
sion. This  is  not  possible,  however.  The  details 
connected  with  the  maintenance  of  machinery 
and  equipment 
are  things  that 
only  machinists 
can  fully  com- 
prehend. To 
others  the  sub- 
ject is  more  or 
less  confusing, 
but  they  know 
that  renewals 
must  be  made 
promptly  and  ef- 
fectively as  they 
are  about  a 
house,  otherwise 
the  damage  is  multiplied  indefinitely.  The  same 
is  true  of  buildings,  fences  and  other  parapher- 
nalia. It  is  true  of  the  track,  except  that  here 
the  routine  is  more  generally  comprehended.  An 
English  writer  thus  describes  the  maintenance  of 
the  track  on  an  English  road.*  It  is  not  notice- 
ably different  from  our  methods.  "  In  England 

*  Colonel  Geo.  Firidluy. 


308     FINANCING,  CONSTRUCTING,  MAINTAINING. 


three  men  with  a  foreman  form  a  gang.  This 
gang  has  charge  of  the  inspection  and  mainte- 
nance of  about  two  miles  of  double  line  of  rail- 
way. An  average  of  one  man  to  each  mile  of 
single  line.  The  exact  number  depends  upon  the 
extent  of  traffic  and  consequent  wear  and  tear; 

also  the  number  of 
junctions  and  sidings 
which  have  to  be 
maintained.*  Eveiy 
ten  or  twenty  gangs 
are  under  the  direct 
supervision  of  an  of- 
ficer known  as  an  in- 
spector. Every  seven 
or  eight  inspectors 
are  under  the  control 
of  a  chief  inspector, 
who  has  also  under 
him  traveling  gangs 
of  ballasting  men  and 

relayers,  who  are  employed  in  renewing  the  per- 
manent way  and  carrying  out  alterations  and 
additions.  Each  division  of  road  has  also  a  full 
complement  of  artificers,  joiners,  masons,  brick- 
layers, painters  and  blacksmiths,  with  their  fore- 

*  The  length  of  track  allotted  different  gangs  in  the  United 
States  depends  upon  the  character  of  the  track  and  the  amount 
of  traffic  passing  over  it;  also  somewhat  upon  the  capacity  of 
the  foreman.  Four  miles  is  about  the  maximum,  except  in  the 
case  of  single  track.  A  section  must  not  be  so  long  that  those 
in  charge  cannot  inspect  it  at  frequent  intervals;  cannot  quickly 
reach  any  point  in  the  event  of  disaster.  M.  M.  K. 


Stevens  Rail,  Chemin  de  fer  du  ft  ord. 
France,  A.  D.  1888. 


TRACK  DETAILS. 


309 


men  and  inspectors,  whose  duty  it  is  to  repair  the 
bridges,  tunnels,  stations  and  buildings  of  the 
company.  All  these  men,  with  their  chiefs  and 
inspectors,  are  under  the  direction  of  a  civil 
engineer  of  experience,  who  has  a  staff  of  sur- 
veyors, draughtsmen  and  clerks,  located  at  the 
most  important  center  of  traffic  on  his  division. 
The  duties  of  the  track  force  comprise  the  daily 
inspection  of  every  portion  of  the  section  of  line 
under  its  charge,  and  the  repairs 
of  the  permanent  way,  fences, 
drains  and  roads.  Track  fore- 
men are  required  to  report  any- 
thing they  may  observe  to  be 
amiss  with  telegraph  wires,  sig- 
nals or  passing  trains.  This  duty 
is  especially  imperative  during 
storms,  fogs  or  heavy  falls  of 
snow.  It  is  made  their  duty  to 
furnish  inspectors  with  a  state- 
ment of  materials  needed,  used 
and  on  hand.  Each  official 
throughout  the  corps  is,  in  his 
order,  responsible  for  the  work  of 
men  under  him.  The  stability  of  the  permanent 
way  and  works  of  a  railway  is  frequently  threat- 
ened. Ceaseless  vigilance  has,  consequently,  to 
be  exercised."  The  efficiency  of  the  track  force 
on  the  roads  of  Great  Britain  has  long  been 
remarked  by  the  railway  men  of  other  countries. 
On  some  French  railroads  a  novel  system  of 
maintenance  is  adopted,  which  is  claimed  to 


Bull-headed  Rail. 


310     FINANCING,  CONSTRUCTING,  MAINTAINING. 


Standard  rail  of  Belgian  government, 
A.  D.  1889. 


lessen  cost.  Instead 
of  making  repairs 
daily,  as  the  neces- 
sity develops,  the 
whole  road  is  peri- 
odically gone  over 
and  repaired.  At 
such  times  the  bal- 
1  a  s  t  is  readjusted 
(new  ballast  being 
applied  if  necessary), 
ties  are  tamped,  the 
track  cleared  of 
weeds,  the  rail  fast- 
enings cleaned  and 
inspected,  chairs  examined,  the  gauge  tested  and 
corrected,  rails  adjusted,  and  other  defects  reme- 
died. The  intervals  between  these  periodical 
overhaulings  vary  according  to  the  traffic;  thus, 
main  lines,  over  which,  say,  more  than  forty 
trains  pass  daily,  will  be  gone  over  once  each 
year;  track  over  which  twenty,  and  not  more  than 
forty,  trains  run  daily  will  be  overhauled  every 
two  years,  and  so  on.  It  is  not  asserted  by  those 
who  practice  this  system  that  other  repairs  beside 
these  periodical  overhaulings  are  not  required, 
but  it  is  cJ  aimed  that  under  this  plan  occasional 
repairs  are  reduced  to  the  minimum. 

In  the  maintenance  of  the  track  of  a  railway, 
the  foremen  in  charge  of  gangs  of  men  are 
greatly  trusted,  because  of  their  experience  and 
reliability.  They  are  not,  however,  as  a  rule, 


TRACK  DETAILS.  311 

men  of  high  education.  They  are  practical  men, 
who  have  entered  the  service  as  laborers.  The 
time  will  come,  however,  it  is  probable,  when 
superior  officials,  including  civil  engineers,  will 
climb  to  preferment  through  positions  of  this 
kind.  There  is  no  doubt  that  a  civil  engineer's 
efficiency  would  be  greatly  enhanced  if  he  had 
the  practical  knowledge  of  track  matters  that  is 
acquired  by  the  use  of  the  pick  and  shovel  and 
the  actual  management  of  a  gang  of  men.  Men 
may  have  experience  in  railway  matters  and  yet 


Metal  "Pot"  Tie,  Midland  Railway  of  India, 
A.  IX  1889. 


not  be  so  valuable  as  those  without  it,  because  of 
lack  of  knowledge  and  intelligence,  but  experi- 
ence adds  to  the  value  of  every  man's  usefulness. 
A  civil  engineer  in  charge  of  roadway  and  track, 
who  has  come  to  his  position  through  the  various 
grades  of  the  service,  has  a  better  grasp  of  affairs 
than  one  who  has  not.  He  is  without  prejudice 
and  has  an  enlightened  understanding  of  the 
possibilities  of  every  position  under  him.  This 
knowledge  cannot  be  acquired  in  all  its  fullness 
except  by  experience.  Not  only  would  the  capa- 
bility of  the  civil  engineer  be  increased  by  his 


312     FINANCING,  CONSTRUCTING,  MAINTAINING. 

filling  the  various 
positions  under 
him,  but  the  effi- 
ciency of  other 
officers,  from  the 

Metal  track,  Queensland,  A.  D.  1889.  ,          -,      » 

track  foremen  up, 

would  be  greatly  heightened  thereby.  If  there 
is  any  value  in  education  and  practical  knowl- 
edge, it  would  in  this  way  be  secured  for  the 
lowest  offices  in  the  service  as  well  as  the  highest. 
In  the  things  that  go  to  make  up  the  physical 
structure  of  railroads  in  Great  Britain  and  Amer- 
ica* there  has  been  a  tendency,  from  the  start,  to 
conform  to  particular  patterns.  This  tendency 
has,  on  the  whole,  been  a  healthy  one,  because 
based  on  discussion  and  experiment.  There  has 
been  no  compulsion  about  it.  Selection  has  been 
based  on  the  survival 
of  the  fittest.  Inhe- 
rent differences  in 
properties  have  ever 
been  recognized,  and 

attempts     have     not    Metal  track,  Midland  Railway,  A.  D.  1889. 

been  made  to  harmo- 
nize elements  naturally  antagonistic.    Unifica- 
tion, so  far  as  it  has  extended,  has  been  predicated 
upon  these  conditions.    The  theories  of  doctri- 
naires have  nowhere  found  expression. 

*  I  beg  the  reader  to  understand  that  wherever,  throughout 
this  work,  I  refer  to  America,  I  mean  the  United  States  and 
Canada.  Most  of  the  Mexican  railroads  are  constructed  and 
operated  the  same  as  those  of  the  United  States  and  Canada. 

M.  M.  K. 


TRACK  DETAILS.  313 

The  standard  articles  used  by  railroads  embrace 
things  that  are  alike,  such  as  the  flange  and  form 
of  wheel,  the  tread,  the  interposition  of  springs 
and  equalizing  bars  to  relieve  the  blow,  the 
gauge  of  tires,  driving  wheel  centers,  couplers, 
gauge  of  wheels,  journals,  axles  and  other  items 
connected  with  the  running  gear  of  locomotives 
and  cars. 

After  patterns  have  been  formally  agreed  upon, 
however,  they  continue  to  be  the  subject  of  ani- 


Section  of  English  Permanent  Way. 

mated  discussion  by  railway  officers  and  others, 
so  that  the  service  does  not  remain  stationary  or 
deteriorate  from  lack  of  continual  interest  and 
attention,  as  it  would  if  devices  were  introduced 
and  enforced  by  arbitrary  means.  The  work,  it 
is  understood,  is  only  just  begun.  It  is  probable 
that  a  standard  rail  section  for  different  kinds 
and  weights  of  metal  will,  sooner  or  later,  be 
adopted.  Interest  in  the  matter  spreads  contin- 
ually. It  is  of  the  greatest  possible  importance 


314     FINANCING,  CONSTRUCTING,  MAINTAINING. 


Metal  track,  London  &  Northwestern, 
A.  D.  1889. 


in  the  maintenance  of  railroads,  as  the  rail  forms 
a  preponderating  item  in  the  permanent  way. 
And  in  regard  to  the  permanent  way,  it  is  the 
key  of  the  railway  situation  and  dominates  all 
other  interests.  The  subject  is  most  interesting 
and  practically  inexhaustible. 

The  permanent  way  of  a  road,  as  referred  to  in 
a  previous  chapter,  consists  of  the  rails,  their  sup- 
ports and  fasten- 
ings, and  attend- 
ant switches  and 
frogs;  the  align- 
ment of  tangents 
and  curves;  the 
superstructure 
of  stone,  gravel 

and  dirt,  and  the  bridges  and  culverts.  This  mass 
must  be  so  constructed  and  blended  that  trains 
may  pass  over  it  safely  and  smoothly  with  the 
minimum  wear  and  tear  to  both  equipment  and 
permanent  way. 

An  interesting  writer,*  speaking  of  American 
railways,  says  in  regard  to  permanent  way  matters: 
"Rails  should 
be    curved    be- 
fore laying   on 
any  curve  that    ^  — 
exceeds  two 
degrees;    they 
should      be 
curved    with 


Metal  track,  Elfcrfeld  Railway,  Germany, 
A.  D.  1889. 


'•  Wm.  F.  Ellis. 


TRACK  DETAILS.  315 

some  form  of  machine  which  will  not  produce 
sudden  concussion  on  the  rail.  Angle  bar  joints 
should  not  be  over  twenty-four  inches  long,  of 
such  weight  and  shape  as  not  to  break,  and  to  give 
proper  support.  The  ties  should  not  be  less  than 
eight  feet  long,  seven  inches  thick,  with  face  at 
least  seven  inches,  using  at  least  twenty-eight 
hundred  to  the  mile.  The  split  switch  with  the 
automatic  stand,  with  a  flexible  tie  or  switch  rod, 
should  be  used  not  only  on  the  main  track  but 
on  inside  track  switches  where  there  is  any 
amount  of  switching  done,  and  at  side  track 
switches  where  a  derailment  from  an  open  non- 
safety  automatic  switch  would  stop  the  traffic 
on  the  main  track.  I  would  also  recommend  a 
guard  rail  to  be  used  at  the  points  of  all  split 
switches  where 
s  a  m  e  are  not 
trailing  switches. 
A  spring  rail  frog 
should  be  used  in 
all  cases  except 
where  there  is 
nearly  the  same  Metal  track- Great  £?Dt.ri«»aIlway  °f  Belglum> 
wear  on  each 

wing  of  the  frog,  and  at  yards  where  the  rigid 
rail  frog  is  used.  The  best  form  of  guard  rails 
at  frogs  is  the  following:  Length,  twelve  to 
fifteen  feet,  curved  a  true  curve,  with  a  radius  of 
one  hundred  and  fifty  or  a  hundred  and  seventy- 
five  feet;  center  of  guard  rail  set  six  inches 
ahead  of  point  of  the  frog,  securely  spiked  and 


316     FINANCING,  CONSTRUCTING,  MAINTAINING. 

fastened  with  three  braces,  one  opposite  the 
point  of  the  frog  and  one  on  either  side.  This 
would  be  a  correct  guard  rail  for  rigid  rail  frogs, 
but  for  a  spring  rail  frog  the  guard  rail  would 
have  to  be  parallel  to  the  main  rail,  with  a 
flangeway  of  one  and  three-quarter  inches  for 
at  least  nine  feet  of  its  length  at  center  of  same 
and  well  braced  its  entire  length.  Alignment 
of  tangents  once  in  ten  years,  and  especially  of 
the  curves  once  in  five  years,  should  be  corrected 
by  transit.  Elevation  should  be  such  as  the  speed 
of  trains  and  traffic  demand.  Ballast  should  be 


Metal  track,  Holland  "Post"  Tie,  A.  D.  1889. 

of  broken  stone  when  circumstances  permit,  or 
good  gravel  with  proper  drainage  to  same,  and 
at  least  once  in  five  years  in  the  surfacing  of  the 
track,  slight  raising  of  the  same,  where  possible 
to  be  done.  All  highway  crossings  should  be 
carefully  cleaned  out  each  year  and  renewed 
with  fresh  ballast.  Culverts  should  be  of  stone 
and  covered  with  ballast  if  possible.  Where 
arches  of  stone,  through  cost  or  location,  cannot 
be  used,  iron  bridges  should  be.  They  should  be 
constructed  with  a  view  to  carry  with  safety  not 
only  the  weight  of  the  present  rolling  stock,  but 


TRACK  DETAILS. 


317 


Metal  track,  Egyptian  Agricultural  Railway, 
A. 


a  proportional 
increase  in  the 
same  as  the  last 
ten  years'  prog- 
ress has  indi- 
cated what  it 
may  be,  and 
with  these 
bridges  a  floor  and  guard  rail  should  be  used,  in 
which  the  ties  should  be  ten  feet  long,  eight  by 
eight  inches  square,  eight  inches  apart,  secured 
in  place  by  timber  six  by  six  inches  square, 
gained  on  to  each  tie  near  the  outer  end  and 
bolted  firmly,  an  iron  guard  of  railroad  iron  on 
the  inside  of  the  track  rails  and  eight  inches 
from  them,  and  approaching  the  center  of  the 
track  at  about  thirty  feet  from  the  ends  of  the 
bridge  and  connected  together  by  the  old  point 
of  a  frog;  the  long  bridge  ties  for  the  distance 
of  about  thirty  feet  should  be  put  in  on  the 
ground  at  each  end  of  the  bridge,  and  the  out- 
side guard  rail  should  be  extended  on  same, 
spreading  at  the  ends  about  three  feet  outside  of 
the  main  track  rail.  To  this  I  would  add  the  use 

of  a  rerailing  de- 
vice. The  metal 
used  in  a  track 
should  be  such 
as  the  speed  of 

Metal  track, Vautherin  system,  France,  A.  D.  1889.      traillS    aild      ton- 

nage   require.     Material  should   be   renewed  at 
the  proper  time,  and  when  renewed,  maintained." 


318     FINANCING,  CONSTR  UCTIXG,  MA  IX TA IXIXG . 

While  cross  ties  are  very  generally  used  as  the 
support  for  rails,  the  use  of  longitudinal  bearings  is 
more  or  less  practiced,  especially  in  Germany  and 
Austria.  They  have,  however,  never  been  generally 
popular  because  of  peculiar  defects  and  greater 
cost.  But  the  increase  in  weight  of  locomotives 
and  cars,  and  the  possibility  that  such  increase 
will  go  on  indefinitely,  indicate  a  possible  neces- 
sity for  further  strengthening  the  track.  Exactly 
how  this  will  be  done  cannot  be  foretold.  It  has 
been  suggested  that  the  use  of  longitudinal  sup- 
ports for  the  rails  in  connection  with  the  cross 
tie  would  meet  the  situation.  The  requisites  of 
such  a  longitudinal  system  are  thus  described  by 
Thomas  C.  Clark,  M.  Am.  Soc.  C.  E.  "  First.  The 

longitudinal 
bearer  under  the 
rail  must  be  stiff 
enough  to  trans- 
^SP  in  it  the  load  to 
such  a  distance, 

Haarman  longitudinal  meta^track,  Rhine  Railway,  on     each     sideof 

the     wheel,     as 

will  limit  the  pressure  to  not  much  over  two  tons 
per  square  foot  of  bearing  surface,  without  requir- 
ing excessive  width.  Experience  has  shown  that 
a  greater  pressure  than  two  tons  per  square  foot 
will  sink  ties  too  deep  into  the  gravel  or  broken 
stone.  Second.  The  next  thing  is  to  attach  the 
rails  and  bearers  together  by  a  form  of  fastening 
strong  enough  to  resist  all  strains  and  shocks  and 
yet  allow  of  freedom  of  the  rail  to  expand  and 


TRACK  DETAILS. 


319 


Metal  track,  Central  Railway,  Argentine  Re- 
public, A.  D.  1889. 


contract  independently  of  its  bearer.  It  must 
also  be  held  to  its  bearer  so  that  creeping  of  the 
rail  on  the  bearer  may  be  prevented,  and  that 
without  any  notching  or  cutting  of  the  rail  that 
will  impair  its  strength.  The  rails  must  break 
joints  with  the  bearers.  The  fastenings  must  be 
so  made  that  the  rails  can  be  quickly  removed 

and  replaced  by 
new  ones  without 
disturbing  the 
bearers.  The  fast- 
enings must  be  able 
to  hold  for  a  time 
a  broken  rail  so 
that  it  will  safely 
pass  the  trains,  and  no  system  but  the  longitudi- 
nal can  do  this.  Third.  The  bearers  and  rails 
should  be  united  firmly  together  by  light  metallic 
gauge  ties,  placed  near  enough  to  properly  pre- 
serve the  accuracy  of  the  gauge.  Fourth.  The 
bearers  and  gauge  ties  should  be  of  such  shapes 
as  can  easily  be 
tamped  with  grav- 
el or  broken  stone, 
as  will  stay  in  place 
vertically,laterally 
and  longitudinally, 
and  will  allow  of 
drainage  to  pass 
between  them.  Fifth.  The  system  should  be  so 
planned  that  no  difficulty  of  construction  can 
occur  at  curves,  either  in  alignment  or  elevation 


Metal  track,  Bilbao  and  Las  Arenas,  Spain, 
A.  D.  1889. 


320     FINANCING,  CONSTRUCTING,  MAINTAINING. 

of  outer  rail.  Also  it  should  be  so  made  as  to 
easily  join  to  the  ordinary  form  of  T  rail  at  turn- 
outs and  switches.  Sixth.  Besides  the  obvious 
advantages  which  such  a  construction  gives,  there 
are  two  others:  The  upper  rail  can  be  made  of  a 
harder  and  better  worked  steel,  while  the  bearer 
can  be  made  of  a  softer  and  tougher  quality  of 
metal.  Probably  basic  steel  would  do  for  this. 
Owing  to  the  rails  being  supported  under 
their  entire  length  by  continuous  bear- 
ers they  can  be  made  of  less  depth  and 
sectional  area  in  their  flanges  than  at 
present.  The  metal  so  saved  can  be 
put  into  the  head  of  the  rail,  where  it 
is  most  needed.  It  is  believed  that  rails 
can  be  designed  for  a  longitudinal  sys- 
tem with  heads  three  inches  wide,  and 
instead  of  weighing  one  hundred  and 
Track  spike,  ten  pounds  to  the  yard,  they  need  not 
weigh  over  seventy  pounds  to  the  yard.  This 
saving  of  metal  can  be  applied  to  reducing  the 
cost  of  the  whole  system.  The  wear  being  con- 
fined to  the  upper  rail,  the  amount  of  metal 
which  goes  into  the  scrap  heap  is  the  least  pos- 
sible." 

The  free  use  of  metals  in  connection  with  rail- 
ways has  now  become  so  general  that  the  causes 
that  precipitate  deterioration  in  that  direction 
have  assumed  an  importance  unknown  in  earlier 
days. 

The  wear  of  metals  is  understood  to  be  the 
tearing  oft'  of  minute  particles  of  the  substance 


TRACK  DETAILS. 


321 


by  friction.  Chemists  have  for- 
mulated no  theory  in  regard  to  the 
matter.  Wear  is  influenced  by  the 
particular  conditions  under  which 
it  takes  place,  such  as  lubrication, 
speed,  temperature,  pressure,  roll- 
ing, friction,  etc.  Railways  have 
been  handicapped  in  their  experi- 
ments, and  the  conclusions  drawn 
the  future  will  quite  likely  upset. 
It  is  believed,  however,  by  experts 
in  such  matters  that  metal  having 
fine  granular  structure  (provided 
its  tensile  strength  and  elongation  Action  of  sPike 

i    ,  „  on  Tie. 

are  equal  to  those  of  a  coarser  de- 
scription) will  wear  less  than  the  other,  for  the 
reason  that  the  particle  of  metal  torn  off  is 
smaller  and,  therefore,  less  destructive.  This 
conclusion,  however,  is  disputed.  Actual  tests, 
meager  as  they  are,  it  is  claimed,  show  that  metal 
which  may  be  extended  (elongated)  most  without 
breaking  will  wear  best.  Thus  rails  of  mild  steel, 
if  properly  made,  are  thought  to  be  less  liable  to 
fracture,  crushing  and  dis- 
integration than  harder  rails. 
The  fact  has  been  disputed, 
but  preponderance  of  evi- 
dence seems  to  be  in  favor 
Action  of  Ran  on  Tie.  Of  the  conclusion.  The  same 
is  claimed  to  be  true  of  the  wear  of  the  tires  of 
driving  wheels.  When  tires  taken  from  wheels 
of  the  same  locomotive  have  come  into  the  shops 

21     Vol.  3 


322     FINANCING,  CONSTRUCTING,  MAINTAINING. 

for  returning  it  has  been  noticed  that  more  metal 
had  to  be  removed  from  the  soft  than  from  the 
hard  tires,  thus  proving  that  the  wear  of  the  latter 
was  greater.  It  is  also  claimed  that  experiments 
conducted  in  alloys  used  as  bearings  show  that 
wear  is  greater  with  metals  which  are  brittle 
than  with  those  which  are  more  pliable.  The 
reason  for  this  is  thought  to  lie  in  the  fact  that  in 
metals  of  higher  temper  the  rupture  of  small 
particles,  because  of  their  brittleness,  occurs  more 
easily  than  in  more  ductile  metals.  The  more 
brittle  a  metal  the  larger  its  granular  structure. 
It  is  the  conclusion  of  many  versed  in  such 
matters  that  the  greater  the  elongation  of  a 
metal,  while  still  retaining  its  tensile  strength, 
the  less  the  wear;  that  high  tensile  strength, 
with  great  elongation  and  fine  structure,  give 
the  best  results  in  actual  service.  On  the  other 
hand,  tests  made  on  a  state  railroad  of  The 
Netherlands  seem  to  disprove  them  in  some  re- 
spects. These  tests  demonstrate  that  a  soft  rail 
wears  much  more  rapidly  than  a  hard  one.  In 
making  the  tests  a  number  of  experimental  rails 
were  placed  in  both  single  and  double  tracks. 
The  point  selected  was  on  a  level  and  straight 
track  sufficiently  distant  from  a  station  to  avoid 
the  use  and  effect  of  brakes.  The  rails  were  care- 
fully selected,  weighed  and  measured.  Their  ten- 
sile strength  varied  from  sixty-seven  thousand  to 
one  hundred  thousand  pounds  per  square  inch.  At 
first,  effort  was  made  to  ascertain  wear  by  means 
of  measurement  with  a  micrometer.  These  meas- 


TRACK  DETAILS. 


323 


Track  Bolt. 


urements  were  not  satisfactory,  inasmuch  as  the 
least  inclination  of  the  rail  removed 
the  point  of  wear  to  one  side  of  the 
center.  The  instrument  would  not, 
because  of  this,r3cord  the  actual  wear. 
A  number  of  the  rails  were  then 
taken  up,  and,  after  being  carefully 
cleaned  of  dirt  and  rust  with  a  steel 
brush,  were  weighed.  The  differ- 
ence between  the  first  and  second 
weighing  gave  the  wear  due  to  the 
passage  of  trains  and  to  rust.  The 
conclusions  drawn  from  the  data 
thus  obtained  showed  that  the  wear 
of  the  soft  rails  had  been  about  twenty-seven  per 
cent,  more  than  that  of  the  hard  rails,  or  inversely 
to  the  tensile  strength  of  the  rails.  From  these 
practical  tests  it  Avould  seem  that  the  harder  the 
rail  the  better  the  wear;  but  as  the  wear  of  the 
rails  in  question  was  due  somewhat  to  rust,  it  is 
claimed  that  definite  conclusions  cannot  be 
drawn  therefrom. 

Each  year  witnesses 
some  improvement  in  the 
track  of  railways;  in  a 
decrease  in  derailment  of 
trains  from  an  unstable 
roadbed;  from  the  spread- 
ing of  the  track;  from 
broken  rails  and  defective 
switches.  These  improve- 
ments are  the  result  of 


324     FINANCING,  CONSTRUCTING,  MAINTAINING. 

experience  and  added  ability  on  the  part  of  those 
in  charge. 

In  the  maintenance  of  the  permanent  structures 
of  a  company  the  payment  of  premiums  for 
manifest  excellence  has  found  strenuous  advo- 
cates. They  claim  it  is  especially  efficacious  in 
securing  a  good  roadbed  and  in  maintaining  and 
improving  the  track  and  yards.  Awards  are 
made  under  different  systems  by  different  com- 
panies. One  company's  schedule  of  premiums  is 
given  below.*  Its  effect  in  securing  greater 
interest  and  intelligence,  it  is  claimed,  has  been 
marked.  In  its  practical  operation  the  recipients 
of  a  premium  are  not  allowed  to  compete  for  lower 
premiums.  The  inspections  upon  which  the 
premiums  are  based  are  made  yearly.  The  men 
for  whom  the  rewards  are  instituted  themselves 
make  the  inspections,  each  for  the  other.  The 
premiums  are  awarded  under  the  supervision  of 
the  employing  company.  The  system  has  been 
found  to  stimulate  the  ambition  of  men  and  to 
increase  and  broaden  their  understanding.  It 
intensifies  their  desire  to  learn  instead  of  relying 
wholly  Upon  themselves. 

*$100  to  the  roadmaster  having  the  best  yard  on  his 
division.  $100  each  to  the  roadmasters  having  the  best  road- 
master's  division  on  each  superintendent's  division  of  100  miles. 
$75  to  the  section  foreman  having  the  best  section  of  two  and 
a  half  miles  on  his  division.  $60  to  each  section  foreman  hav- 
ing the  best  section  on  his  superintendent's  division,  including 
yards.  $50  to  the  section  foreman  having  the  best  section  on 
each  roadmaster's  division.  $100  to  the  roadmaster  having  the 
best  line  and  surface  for  the  whole  length  of  road.  $50  to  the 
second  best  ditto. 


TRACK  DETAILS. 


325 


The  (Jfeestion  of  paying  premiums  for  superior 
service  is  taken  up  in  another  volume.*  The 
subject  is  an  interesting  one  and  wherever 
properly  regulated 
will  be  found  bene- 
ficial, its  advocates 
believe.  Men  are 
differently  consti- 
tuted. Some  are 
more  conscientious 
than  others.  But 
the  interest  of  all 

will  be  stimulated 

by  prospective  re- 
wards. If  this  is  true  of  a  conscientious  man, 
how  much  more  true  it  is  of  those  differently 
constituted,  who  need  the  spur  of  incentive. 
There  can  be  no  doubt  that  the  zeal  of  everyone 
who  labors  for  another  will  be  heightened  by  the 
hope  of  special  reward  for  faithful  and  intelligent 
service.  Wherever  the  practice  has  been  properly 
tried  it  has  been  found  beneficial,  especially  in 
regard  to  the  track  and  train  service,  its  advocates 
claim. 

The  maintenance  of  a  railroad  means,  among 
other  things,  freedom  from  risk,  from  accident, 
from  delay,  from  unnecessary  expense,  the  adop- 
tion of  due  safeguards.  One  of  the  greatest 
sources  of  anxiety  to  railroad  managers  is  the 
care  of  bridges  and  culverts,  their  protection 
from  fires,  from  the  undermining  effects  of  water 

*  "Train  Service." 


326     FINANCING,  CONSTRUCTING,  MAINTAINING. 


and  frost,  from  the  floods 
of  summer  and  the  ice  of 
winter.  The  struggle  is  a 
never  ending  one.  Each 
month  takes  on  some  new 
phase.  Every  structure 
has  its  peculiar  features. 
In  addition  to  the  dangers 
that  menace  bridges  and 
culverts  from  the  streams 
they  cross,  their  immediate  stability  is  threatened 
by  the  trains  that  pass  over  them.  The  risk  here 
is  a  double  one — that  of  destruction  of  both  the 
bridge  and  the  train,  with  attendant  loss  of  life. 
The  prevention 
of  this  double 
calamity,  it  is 
apparent  at  a 
glance,  is  One  of 
importance.  Yet 
the  risk  is  not  so 
great  or  immi- 
nent as  to  make 
the  questiona 
vital  one.  Acci- 
dents are  only  occasional  and  do  not,  therefore, 
impress  themselves  upon  the  managers  or  the 
public.  Nevertheless,  as  railway  practice  grows 
older  and  men  have  more  time  to  think  and  car- 
riers have  greater  means  and  leisure  to  accom- 
plish results,  they  will  interest  themselves  more 
and  more  in  precautionary  measures.  The 


TRACK  DETAILS.  327 

devices  adopted  will  be  manifold.  A  writer* 
discussing  the  subject  of  bridge  (track)  protec- 
tion, says:  "The  device  must  be  so  arranged 
that  it  cannot  in  any  way  cause  the  derailment 
of  a  car.  It  should,  therefore,  leave  abundant 
room  for  the  passage  of  wheels,  making  allow- 
ances for  the  condition  of  wheels  and  tires  that 
are  badly  worn,  as  well  as  those  that  are  new. 
Account  must  also  be  taken  of  the  use  of  cars 
from  other  roads.  It  must  not  touch  the  weak 
points  of  a  derailed  car,  and  must  be  so  arranged 
as  to  come  in  contact  with  the  running  gear  only. 
It  must  direct  the  wheels  of  a  derailed  car  back 
upon  the  track  without  violent  shocks,  either  in  a 
horizontal  or  vertical  direction,  and  must  bring 
them  back  before  they  reach  the  bridge.  It  must 
keep  on  the  track  during  the  passage  over  the 
structure  cars  which  may  have  been  derailed 
from  any  defect.  It  must  be  constructed  of 
durable  materials,  and  in  such  a  way  that  it  will 
not  fail  when  needed.  It  must  have  no  very 
heavy  pieces,  so  that  its  putting  in  place,  repair, 
etc.,  can  be  easily  done  by  an  ordinary  track 
gang.  It  must  permit  the  tamping  of  ties.  It 
must  be  cheap  to  make,  to  put  in  place,  to  keep 
in  order  and  to  renew.  In  other  words,  it  must 
be  easy  to  handle,  and  of  small  cost." 

The  track  of  a  railway  must  be  sufficient  to 
support  the  weight  and  rush  of  traffic,  however 
great.  That  it  should  be  well  moored  and  have 
a  strong  wall  and  tenacious  fiber  goes  without 

*  J.  W.  Post, 


328     FINANCING,  CONSTRUCTING,  MAINTAINING. 

saying.  The  moorings  of  a  track  are  its  ballast, 
including  the  fastenings  that  hold  the  rail  to  the 
tie.*  The  devices  used  for  track  fastenings  have 
been  improved  in  many  respects,  nevertheless  no 
device  has  yet  been  found  that  will  hold  the  rail 
securely  to  the  tie.  It  may  be  too  much  to  ex- 
pect this.  The  strain  is  too  great.  However,  if 
it  can  be  attained  it  will  reduce  the  wear  and 


Old-fashioned  Switch,  with  "  ball "  counter  weight. 

tear  of  the  tie,  add  smoothness  to  the  roadbed 
and  lessen  depreciation  of  track  and  equipment. 
The  instrument  that  fastens  the  rail  to  the  tie 
has  two  great  purposes  to  serve;  first,  to  prevent 
the  rail  from  spreading,  and,  second,  to  resist  the 
effort  to  lift  it  vertically  from  its  socket.  The 


* "  Where  there  is  not  sufficient  ballast  to  give  elasticity  to 
the  track,  the  rail  wears  out  twice  as  fast  as  on  level  ground  or 
an  embankment.  A  large  stone  or  piece  of  rock  under  a  tie  will 
soon  -show  itself  by  the  rail  wearing  out  over  it.  Clamp  a  pair 
of  angle  plates  to  the  center  of  a  rail  where  there  is  110  joint 
and  in  six  months  the  rail  will  be  worn  down  in  a  rut  directly 
over  the  plates,  showing  clearly  that  any  extra  resistance  pro- 
duces extra  wear." — James  Churchward,  C.  E. 


TRACK  DETAILS.  329 

lateral  pressure  of  a  train  passing  over  a  track 
would  cause  the  rails  to  spread  apart  unless  the 
fastenings  prevented  it.  Again,  the  effect  of  the 
passing  train  is  to  depress  the  rail,  and  with  it 
the  tie.  The  reaction  of  the  rail  and  the  tie  is 
not  coincident.  The  rail  springs  back  first.  The 
result  is  to  throw  the  weight  of  the  tie  and  the 
surrounding  ballast  with  the  added  strain  on  the 
head  of  the  spike.  This  explains  why,  in  exam- 
ining a  track,  but  few  spikes  are  found  to  press 
firmly  against  the  rail.  Because  of  this  the  rail 
is  allowed  greater  or  less  freedom  of  motion  in 
every  direction.  Among  other  evils  engendered 
by  this  is  the  accumulation  of  sand  and  dirt 
between  the  rail  and  the  tie,  pre- 
cipitating the  destruction  of  the 
latter.  The  difficulties  of  the  situ-  TraCk  Level. 
ation  are  aggravated  in  winter. 
Thus,  when  the  ground  is  frozen  it  is  impossible 
for  the  spike  to  lift  the  mass  in  which  the  tie  is 
imbedded.  It  consequently  gives  way. 

It  is  possible  that  a  practicable  fastening  that 
will  hold  the  rail  and  tie  together,  making  them 
one,  will  be  discovered.  The  value  of  such  a 
device  cannot  be  overestimated.  The  common 
spike,  driven  perpendicularly  into  the  tie,  is  the 
chief  fastening  used  in  America,  as  it  has  been 
from  the  first.  While  far  from  perfect,  from  a 
theoretical  point  of  view,  it  nevertheless  gives 
fairly  good  satisfaction.  However,  a  committee 
of  experts  having  the  matter  under  consideration 
condemned  it  as  not  the  best  possible  design  to 


330     FINANCING,  CONSTRUCTING,  MAINTAINING. 

resist  the  vertical  pull  of  the  rail,  due  to  the 
theory  of  wave  motion,  or  elasticity,  under  the 
moving  train.  How  much  this  strain  amounted 
to  they  were  unable  to  tell,  but  believed  the 
weight  of  the  train  able  to  resist  the  reaction. 
They  thought  the  danger  sufficiently  great  on 
bridges  to  recommend  an  interlocking  bolt  as  a 
precautionary  measure.  What  is  needed  is  a 

spike  made  of  steel, 
that  shall  be  driven 
vertically  on  each 
side  of  the  rail,  thus 
securely  interlock- 
ing the  latter;  that 
will  resist  lateral 
pressure,  or  any  sud- 
Track  Driii.  ^en  derangement  of 

the  machinery,  whereby  extraordinary  outward 
strain  is  thrown  on  the  rail;  that  has  a  strong 
head;  that  can  be  used  over  and  over  again;  that 
will  cut  and  compress  the  fiber  of  the  wood,  and 
not  break  or  mash  it;  that  holds  tenaciously  to 
the  wood,  and  is  thus  prevented  from  being 
loosened  or  withdrawn;  a  spike  that  will  hold 
the  tie  and  the  rail  securely  together. 

Referring  to  the  track  spike,  a  writer  says:  "A 
spike  possesses  adhesive  resistance  on  account  of 
the  friction  between  the  sides  of  the  spike  and 
the  wood  into  which  it  is  driven;  this  friction 
depends  upon  the  amount  of  compressive  stress 
exerted  by  the  wood  against  the  spike,  and  the 
friction  will  be  greater  or  less  according  to  the 


TRACK  DETAILS.  331 

character  of  the  surfaces  in  contact.  In  driving 
a  spike  the  wood  is 
compressed  later- 
ally. The  resil- 
ience or  tendency 
to  spring  back 
again  gives  the  Track  Gauge, 

pressure  against 

the  sides  of  the  spike.  The  greater  the  compres- 
sion of  the  wood  the  greater  will  be  the  com- 
pressive  stress  until  the  wood  splits;  the  limit  of 
adhesive  resistance  is  therefore  that  which  is  due 
to  a  compression  of  the  fibers  which  splits  the 
wood.  Care  must  be  taken,  however,  in  driving 
the  spike  that  the  fibers  are  not  too  abruptly  dis- 
placed. With  spikes  of  large  cross  section  dimen- 
sions there  is  a  tendency  to  carry  along  some  of 
the  fibers  in  front  of  the  blunt  point,  and  leave 
cavities  next  the  body  of  the  spike  instead  of 
solid  wood  in  close  contact."* 

No  matter  how  well  a  track  is  ballasted,  it  will 
not  remain  in  good  surface  unless  the  rails  are 
held  securely  to  the  ties.  Moreover,  a  "rail 
being  free  allows  sand  and  dirt  to  accumulate 
between  itself  and  the  tie,  so  that  the  movement 
of  the  rail  from  passing  trains  becomes  a  gigantic 
rasp  to  cut  the  tie.  When  it  has  once  com- 
menced to  cut,  the  rate  of  disintegration  is  vastly 

"James  E.  Howard.  Mr.  Howard  thinks  that  if  it  is  required 
to  materially  increase  the  adhesive  qualities  of  the  spike,  ex- 
periments should  be  made  in  the  direction  of  larger  spikes 
with  bored  holes  to  receive  them. 


332     FINANCING,  CONSTRUCTING,  MAINTAINING. 


increased.  The  wood  underneath  and  around  the 
edges  of  the  rail  is  mashed  so  that  it  holds  water; 
incipient  rot  is  the  immediate  result.  To  make 
a  tie  last  its  natural  life,  the  first  cutting  must  be 
prevented."*  It  is  a  question  whether  so  much 
shimming  or  blocking  in  winter  would  be 

required  if  rails  were 
perfectly  fastened,  be- 
cause the  tie  being 
securely  fastened  to 
the  rail  would  bring 
it  up  to  its  own  level 
and  prevent  its  freez- 
ing down  in  the  track. 
The  friction  of  the  tie 
meantime  against  the 
ballast,  caused  by  its 
moving  up  and  down 
as  trains  pass,  would 
Track  jack.  detach  particles  of 

ballast,  thus  tamping 

it  to  a  fair  surface.  "Accidents  frequently  arise 
from  the  rail  cutting  away  the  tie  underneath 
the  outside  flange,  causing  the  rail  to  roll  com- 
pletely over.  This  trouble  arises  from  the  fact 
that  the  inside  flange  of  the  rail  is  not  securely 
held  down.  Many  European  roads  guard  against 
this  by  canting  their  rails  inward."* 

Upon  many  roads  the  rail  is  laid  directly  on 
the  tie  and  spiked  thereto.  The  placing  of  a 
plate  or  chair  on  the  tie  for  the  rail  to  rest  on  is 

*  James  Churchward.  C.  E. 


TRACK  DETAILS.  333 

advocated.  It  prevents  the  rail  from  cutting  the 
tie,  gives  it  steadiness,  and  compensates  for  a 
narrow  rail  base.  "  Ties  are  made  more  durable 
by  this  plate  and  can  be  kept  in  service  until 
rendered  useless  by  decay.  The  cheapest  kinds  of 
wood  will  wear,  except  for  decay,  as  long  as  the 
most  expensive.  Wearing  away  of  the  tie  by  the 
rail  is  the  direct  result  of  the  creeping  and  oscil- 
lating movement  of  the  rails  caused  by  the  im- 
pact of  the  weight  passing  over  them.  There  are 
also  indirect  causes  which  contribute  largely  to- 
wards the  wear,  such  as  sand  or  grit  between  the 
rail  and  tie;  also  water  under  the  base  of  the  rail 
injected  into  the  tie  by  the  pressure  of  passing 
trains,  making  the  wood  soft  and  spongy  where  it 
should  be  hardest.  The  plate  overcomes  these  diffi- 
culties. Being  fastened  to  the  tie,  it  receives  the 
wear  arising  from  any  movement  and  friction  of 
the  rail,  and  thus  a  combination  is  obtained  which 
furnishes  the  wearing  qualities  of  an  iron  or  steel 
tie  at  a  reasonable  cost. 
These  plates  render  pos- 
sible the  use  of  soft 
wood  for  ties — cedar, 
for  instance,  which 
makes  only  a  poor  tie 
without  the  use  of  a 
plate  or  chair;  it  is  very 
light  and  soft  and  is 
soon  ground  away  un- 
der the  attrition  of  the 
rails  which  imbed  Track  sa? 


334     FINANCING,  CONSTRUCTING,  MAINTAINING. 

themselves  in  the  timber,  weakening  the  tie, 
which  quickly  breaks  under  the  line  of  the 
rail.  Wear  plates  prevent  this,  and  thus  a  cheap 
tie  is  rendered  as  effective  as  a  white  oak  tie 
costing  much  more.  The  value  of  the  rail 
plate  is  becoming  more  marked  daily  from  the 
increased  weight  that  passes  over  the  track. 
The  portions  of  the  tie  where  the  strain  comes, 
where  the  spike  more  or  less  injures  the  fiber  and 
where  the  crushing  by  the  wheels  is  most  de- 
structive, these  plates  perfectly  protect  from  the 
weather.  Under  the  plate  there  is  no  tendency 
to  rot,  even  when  the  sun  and  rain  have  damaged 
other  portions.  Moreover,  the  weight  is  better 
distributed  over  the  surface  of  the  tie,  and,  as  the 
area  under  pressure  is  thus  considerably  larger, 
the  pressure  per  square  inch  on  the  timber  is 
reduced."* 

Durability  of  rails  and  ties  is  directly  depend- 
ent upon  a  proper  alignment  of  the  track  and 
upon  the  preservation  of  an  even  and  firm  sur- 
face to  the  rail,  especially  at  the  point  of  junc- 
ture. Trackmen  claim  that  a  proper  maintenance 
of  the  joint  (junction  of  the  rails)  is  of  supreme 
importance.  It  is  ever  an  object  of  solicitude  to 
them.  If  the  joint  is  inadequately  supported, 
the  rail  head,  will  be  quickly  battered.  The  seri- 
ousness of  this,  as  regards  the  effect  on  equip- 
ment and  roadway,  does  not  need  elaboration. 
Trackmen  are  practically  a  unit  in  claiming  that 
the  joint  should  be  afforded  such  support  as  will 

*  James  Churclnvard,  C.  E. 


TRACK  DETAILS.  335 

prevent  its  sinking  with  the  weight  of  passing 
trains.  This  requires,  if  the  joint  is  not  sup- 
ported by  a  tie,  constant  readjustment  of  the 
support  afforded  by  the  angle  bar  to  meet  the 
ever  increasing  weight  of  trains.  Upon  some 
well  managed  roads  the  joint  is  not  thus  placed, 
but  is  supported  only  by  a  splice  bar — :a  bar  fit- 
ting to  the  rail  on  each  side,  lapping  at  the  point 
of  junction  and  securely  bolted  to  the  rail.  Each 
method  has  its  advocates.  The  form  of  the  rail 
and  the  pattern  of  the  splice  bar  are  factors  to  be 
considered  in  judging  the  merits  of  the  support 
to  be  afforded  the  joint.  Mr.  Churchward,  whom 
I  have  already  quoted,  says:  "  Present  joints  are 
a  failure.  The  principal  way  of  fastening  the 
ends  of  the  rails  is  by  means  of  splice  bars  in 
some  form  or  other.  This  is  the  correct  way; 
they  form  a  bridge  or  support  to  uphold  the  ends 
of  the  rails,  and,  bearing  against  the  head  of  the 
rail  as  well  as  the  flange,  keep  the  rails,  where 
they  join,  in  line  and  continuity.  The  objec- 
tions to  any  fastening  that  does  not  bear  against 
the  heads  of  the  rails  as  well  as  the  base  are— on 
curves,  as  the  heads  of  the  rails  are  in  no  wise 
held  in  continuity,  it  is  a  question  whether  with 
a  heavy  engine  swerving  against  a  light  rail,  the 
engine  would  not  bend  the  loaded  rail  slightly 
over,  presenting  the  face  of  the  receiving  rail  for 
the  flanges  of  the  wheels  to  strike,  thus  causing 
derailment;  and  another  question  is  whether  the 
web  or  b'ase  of  the  rail  would  not  break  also, 
the  leverage  on  it  being  greatly  enhanced.  The 


336     FINANCING,  CONSTRUCTING,  MAINTAINING. 

present  angle  or  splice  bars  are  of  all  shapes  and 
sizes.  They  wear  and  crush  down  underneath 
the  ends  of  the  rails;  a  cavity  thus  forms  in 
their  center.  The  fault  is  not  with  the  plates, 
but  with  the  rails.  The  bearing  surface  under- 


Automatic  Safety  Switch  Stand. 

neath  the  head  of  the  rail  for  the  splice  bar  (in 
the  present  shaped  rails)  is  only  about  half  an 
inch — often  less.  This  half-inch  bearing  or  face 
has  to  sustain  the  blow  and  weight  of  great  en- 
gines ever  increasing  in  weight.  It  is  impossible 
for  this  face  to  withstand  the  blow  it  -receives. 
Down  it  goes,  forming  first  a  loose,  then  a  low, 


TRACK  DETAILS.  337 

joint.  It  is  impossible  to  make  a  suspended  joint 
satisfactory  with  the  present  shaped  rails  and 
the  ordinary  shaped  splice  bars.  The  only  thing 
that  can  be  done  is  to  make  the  joint  on  a  tie 
with  the  plate  underneath  the  ends  of  the  rails, 
to  help  the  splice  bars  withstand  the  blow  and 
weight  of  the  load.  If  a  suspended  joint  is  used 
— i.  e.,  where  the  ends  of  the  rails  connect  be- 
tween two  ties — it  is  absolutely  necessary  to  have 
a  base  or  auxiliary  plate.  Initial  wear  under  the 
rail  must  be  prevented,  as  tightening  of  bolts 
after  they  have  once  started  cannot  make  the 
joint  solid  again.  Each  succeeding  blow  from 
the  wheels,  from  its  lengthened  drop,  falls  heavier 
than  the  previous  one,  making  the  cavity  deeper 
between  the  end  of  the  rail  and  upper  bearing  of 
the  splice  bar.  The  lower  bearing  of  the  angle 
plate  on  the  flange  of  the  rail  never  shows  the 
same  wear  as  the  head,  simply  because  the  lower 
bearings  are  wide  enough  to  withstand  the  blow. 
We  therefore  come  to  the  conclusion  that  it  is 
not  practicable  to  form  a  perfect  joint  with  angle 
or  splice  bars  without  the  aid  of  an  auxiliary 
base  plate.  It  is  yet  to  be  demonstrated  which 
is  the  best  form  of  plate.  It  must  not  be  too 
heavy,  otherwise  it  will  present  an  extra  resist- 
ance to  the  wheels,  the  effect  of  which  will  be 
as  damaging  as  low  joints.*.  If  a  four-bolted 

*  "What  is  absolutely  required  for  a  perfect  joint  is  a  set  of 
plates  whose  elastic  limit  shall  be  at  least  equal  to  the  same 
length  or  span  of  the  rail.  These  plates  should  have  a  bearing 
under  the  head  or  base  of  the  rail  sufficiently  large  to  prevent 

22    Vol.  3 


338.    FINANCING,  CONSTRUCTING,  MAINTAINING. 

angle  plate  is  examined,  it  will  be  found  that 
the  wear  commences  about  the  second  bolt,  and 
increases  past  the  first,  obtaining  its  maximum 
directly  underneath  the  end  of  the  rail.  Many 
of  our  roads  are  increasing  their  angle  plates  to 
nearly  double  the  old  length  to "  prevent  the 
crushing  over  and  in  front  of  the  first  bolt.  What 
is  required  is  sufficient  bearing  and  strength,  not 
extra  length.  A  splice  should  never  be  over 
twenty  inches,  and  eighteen  would  be  better; 
but  it  must  have  the  necessary  bearings  to  with- 
stand crushing,  and  an  elastic  limit  equal  to  the 


Reinforced  Rail  Joint. 

same  length  of  rail.  The  objection  to  long 
joints  is,  they  commence  to  strengthen  what  is 
not  weak,  and,  stopping  the  elastic  wave  of  the 
rail,  they  cause  the  wheels  to  jump  and  ricochet 
over  the  joint,  thereby  turning  the  even,  gliding 
movement  of  the  wheels  into  a  direct  hammer- 
ing blow  on  the  weakest  part  of  the  construction 
— the  joint.  A  false  mechanical  function  has 
been  placed  on  the  plates  now  in  use.  They  are 

crushing  down  under  the  weight  of  the  maximum  load;  this 
bearing  to  be  always  kept  solid  by  a  sufficiently  strong  auto- 
matic power — a  powrer  that  will  force  the  plates  to  this  solid 
bearing  as  the  scale  wears  off  and  retain  them  there  under  the 
maximum  load,  so  that  the  joint  has  never  any  movement  inde- 
pendent of  the  rail." — James  Churchward,  C.  E. 


TRACK  DETAILS,  339 

slotted  or  punched  to  receive  the  spikes  to  pre- 
vent the  rail  from  creeping.  Originally  they 
were  only  intended  to  keep  the  ends  of  the  rails 
up  and  in  line.  This  is  enough.  They  are  now 
clamped  to  the  rail  and  spiked  to  the  tie  in  such 
a  position  that  with  every  passing  wheel  the  rails 
and  plates  are  antagonized  and  all  repose  de- 
stroyed. The  spiked  angle  plate  resists  creeping; 
with  every  passing  wheel  the  rails  are  pushed 
forward  and  again  brought  back  with  the  plates. 
Every  movement  involves  friction  between  the 
two  surfaces.  Metal  is  displaced  by  each  opera- 
tion. If  the  loss  is  infinitesimal,  multiply  the 
atoms  by  the  wheels  passing  over  the  joint  and  it 
will  be  plainly  seen  why  the  joint  is  so  quickly 
ruined.  How  is  creeping  to  be  stopped?  By 
putting  a  separate  fastening  on  the  receiving  tie, 
so  that  the  rail  is  fastened 
to  this  tie.  There  are  three 
or  four  forms  of  these  fast- 
enings —  simple  effective 
and  cheap.  One  cannot  find 
on  any  road  with  heavy  c  ^  3 

traffic  a  joint  that  is  perfect  Tendency  which  the  motion 
at  the  end  of  two  or  three  &%  toSjSfit0  crU8h  the 
years'  wear.  They  are  all 
more  or  less  worn  and  low.  Every  one  of  these 
joints  is  below  the  center  of  the  rail,  and  goes 
lower  every  day.  No  angle  plate  has  yet  been 
constructed  that  has  an  equal  perpendicular 
strength  as  the  same  length  of  span  in  the  rail; 
consequently,  when  the  weight  of  a  passing  load 


340     FINANCING,  CONSTRUCTING,  MAINTAINING. 

comes  on  the  ends  of  the  rails,  it  beiids  the  plates 
down  and  in  a  short  time  forms  a  permanent  set 
in  them.  Many  roads,  appreciating  this  fact,  are 
placing  the  ends  on  a  tie,  to  give  additional  sup- 
port to  the  plates.  It  is  but  a  short  time  before 
the  ends  of  the  rails,  bending  the  plates,  start  to 
dent  the  wooden  tie  underneath,  so  that  the  evil 
of  a  low  joint  is  only  partially  obviated  by  plac- 
ing the  joint  on  a  tie.  When  the  tie  has  been 


The  Split  Switch. 

dented  down,  and  the  loaded  rail  can  sink  below 
the  receiving  rail,  it  strikes  the  latter  with  a 
heavy  blow  in  taking  it,  which  batters  and  burrs 
out  the  end,  and  finally  ruins  the  joint.  The  tie 
plate  referred  to  elsewhere  prevents  this,  because 
the  loaded  rail  cannot  crush  the  tie,  consequently 
the  loaded  rail  is  always  kept  up  on  a  level  with 
the  receiving  rail.  This  does  away  with  the  blow 
before  mentioned,  and  extends  the  life  of  a  joint 
in  a  very  marked  degree." 


TRACK  DETAILS.  341 

The  effect  of  depression  in  the  joint  of  the  rail 
or  elsewhere  is  felt  outside  of  the  increased  wear 
and  tear  involved  on  roadway  and  machinery. 
It  involves  loss  of  power  and  a  constant  lifting  of 
the  vehicle  from  the  declivities  or  sinkage  in  the 
track  into  which  it  falls.  This  loss  is  propor- 
tionate to  the  number  and  depth  of  the  depres- 
sions and  the  velocity  of  the  moving  vehicle. 
Moreover,  a  weak  spot  in  a  rail  involves  an 
undue  strain  on  the  rail  opposite  caused  by  the 
increased  weight  it  must  bear. 


Barbed  Wire  Fence. 

Track  fastenings  must  adjust  themselves  to  the 
form  of  rail  in  vogue.  The  patterns  that  answer 
with  one  form  will  not  answer  with  another. 
Thus,  the  device  used  with  the  form  of  rail  in  the 
United  States  would  be  entirely  out  of  place  in 
India,  where  a  different  pattern  is  used. 

Upon  bridges  and  curves  the  spike  is  frequently 
supplemented  by  a  bolt.  The  precaution  is  a 
wise  one.  In  early  use,  rail  joints  were  sup- 
ported by  a  piece  of  metal  called  a  "  chair."  The 
device  was  far  from  satisfactory.  It  was  replaced 
by  the  splice  bar,  The  latter  added  greatly  to 


342     FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  agreeableness  of  travel  and  measurably  re- 
duced the  wear  and  tear  of  track  and  machinery. 
The  details  connected  with  the  care  and  main- 
tenance of  track  are  so  infinite  that  I  cannot 
hope  to  deal  here  with  anything  except  vital 
things.  These  have  been,  perhaps,  amply  no- 
ticed. Yet  I  cannot  close  what  I  have  to  say  on 
track  joints  without  quoting  what  a  very  inter- 
esting and  intelligent  writer*  has  to  say  on  the 


American  Cattle  Guard. 

subject.  He  says:  "First.  The  splice  bar  must 
hold  the  two  ends  of  the  rail  at  the  same  level; 
not  allowing  the  slightest  depression  in  one  end 
without  an  equal  depression  in  the  other.  Sec- 
ond. The  strength  to  resist  a  vertical  stress  or 
shock  downwards  at  the  joint  should  be  fully 
twenty-five  per  cent,  greater  than  the  strength 
of  the  rail  to  resist  a  similar  stress  or  shock  at 
any  point  in  its  length.  Third.  When  the  joint 
contrivance  is  tightened  securely  in  all  its  parts, 

*  F.  A.  Delano. 


TRACK  DETAILS. 


343 


in  a  condition  to  meet  the  above  requirements, 
the  expansion  and  contraction  of  the  rails  should 
be  absolutely  unhindered;  otherwise,  the  rails 
will  be  bent  while  expanding,  and  the  track,  in 
extreme  cases,  be  buckled  or  spread.  Fourth. 
At  the  same  time  the  rails  must  be  held  so  firmly 
that,  with  good  ties  and  ballast,  the  creeping  or 
running  of  the  track  will  be  effectually  pre- 
vented. Fifth.  The  joint  device  should  not  re- 
quire a  form  of  rail  which  is  uneconomical  in 
the  disposition  of  metal,  or  which,  for  any  reason, 


OTTO"    UULJUUUUUUUUlJU  L 


Bridge  Guard,  intended  to  prevent  trains  from  being  precipitated  into  the 
stream  beneath  or  over  the  embankments  on  either  side. 

is  not  as  well  suited  as  another  form.  In  addi- 
tion to  the  foregoing  there  is  also  that  very  im- 
portant consideration,  the  ease  of  manipulation, 
as  governing  the  convenience  and  rapidity  of 
laying  track.  Thus,  if  a  joint  is  cumbersome,  in 
many  parts,  and  slow  to  lay  track  with,  such  dis- 
advantages should  be  taken  into  account  in  figur- 
ing the  first  cost  of  the  joints.  Passing  briefly 
over  this  list  of  requirements  in  order,  let  us 
consider  the  good  points  and  the  bad  of  the  com- 
mon types  of  joints  now  on  the  market.  A.  The 


344     FINANCING,  CONSTRUCTING,  MAINTAINING. 

fish  plate  and  angle  bar  type  meet  the  first  re- 
quirement very  well  while  they  are  new  and  the 
bolts  are  tight;  but  if,  for  any  cause,  the  bolts  get 
loose  or  broken,  the  two  rail  ends  are  not  held  at 
the  same  height,  or  if  the  joint  is  neglected  the 
bar  is  nicked  or  bent  and  loses  at  once  its  prin- 
cipal value,  no  matter  how  much  attention  it  has 
afterward.  B.  All  fish  plates  and  most  angle 
bars  are  sadly  deficient  in  strength,  making  the 
strength  at  the  joint  only  partly  as  strong  as  the 
body  of  the  rail,  whereas  it  should  be  twenty- 
five  per  cent,  stronger  than  the  body  of  the  rail. 
With  rail  sections  having  wide,  thin  heads,  which 
are  now  being  so  widely  adopted  in  this  country, 
it  is  possible  to  make  the  angle  bar  far  stronger 
than  it  has  been  possible  to  do  with  rails 
having  deep  and  narrow  heads;  but  after  all 
the  strength  of  the  angle  bar  is  only  effective 
when  the  bolts  hold  it  tight  in  its  position.  C. 
Every  roadmaster  knows  that  fish  plates  and 
angle  bars,  when  tightly  bolted  up,  do  not  meet 
the  third  requirement,  and  it  is  well  known  that 
if  the  track  bolts  are  too  tight  in  summer  the 
angle  bars  clutch  the  rail  with  so  much  fierce- 
ness that  the  track  is  liable  to  be  kinked  or 
buckled  sooner  than  let  the  rails  take  up  the  full 
space  which  has  been  left  for  expansion.  Know- 
ing that  this  is  the  case  with  angle  bars  twenty- 
six  inches  long  with  four  bolts,  it  seems  to  me 
poor  wisdom  to  make  the  bar  forty-four  to  forty- 
eight  inches  long  with  six  bolts.  Indeed,  it  seems 
to  me  that  this  question  of  expansion  and  con- 


TRACK  DETAILS. 


345 


traction  in  rails  is  too  little  regarded  in  the  con- 
sideration of  rail  joints,  and  many  of  the  patented 
devices  which  aim  at  curing  the  faults  in  the 
angle  bar  type  of  joint  tumble  into  the  fault  of 
making  no  provision  for  the  unhindered  expan- 
sion and  contraction.  D.  One  much  heard  of  and 
advertised  device,  while  containing  many  good 
features,  allowing  free  expansion  and  contrac- 
tion, places  no  limit  on  the  distance  apart  that 
the  rails  might  be.  In  this  respect  the  angle  bar 
is  good  and  pre- 
vents creeping, 
especially  if  an- 
chored to  three 
ties.  Some  of  the 
patent  devices 
attempt  to  hold 
the  rail  from 
creeping  by 
notching  it  in 
the  flange,  which 
is,  of  course,  a 
bad  practice,  as  it  makes  the  rail  very  liable  to 
break  through  the  notch.  E.  Angle  bar  and  fish 
plate  joints  are  at  fault  in  respect  to  the  fifth 
requirement  inasmuch  as  such  a  type  of  joint 
requires  flat  finishing  angles  (the  more  nearly 
horizontal  the  better),  small  internal  fillets,  so 
as  to  reduce  the  area  of  support  as  little  as 
possible,  and  small  corner  fillets,  to  increase  this 
area  of  support  as  much  as  possible.  To  make 
a  rail  for  the  angle  bar  involves  a  sacrifice 


A.  D.  1897. 


346     FINAXCIXG,  COXSTR UCTIXti,  M.  1 IXT.  1 IXIXG. 

unquestionably,  and  while  I  am  not  prepared  to 
say  that  the  sacrifice  is  not  worth  making,  I 
do  think  it  is  one  wrhich  should  be  admitted, 
arid  its  value  in  money,  as  nearly  as  it  can  be 
estimated,  added  to  the  cost  of  the  joint  when 
considering  it  in  comparison  with  other  devices. 
F.  Lastly,  to  take  up  the  question  of  the  ease  of 
manipulation,  etc.,  probably  nothing  will  ever  be 
made  which  surpasses  the  angle  bar  or  fish-plate 
joint  for  convenience  in  rapid  laying,  and  un- 
doubtedly the  extra  time  and  labor  incident  to 
laying  rail  with  other  devices  should  be  charged 
as  part  of  the  first  cost  of  the  joint."  Mr.  Delano 
thinks  that  the  perfect  rail  joint  has  yet  to  be 
devised.  "A  good  track 
joint  depends  a  great 
deal  on  the  man  who 
x4....Ai-...^r^v  lays  the  steel  and  the 

LL  mm ... \     J)  man  wh°  takes  care  of 

it.  Rails  w  h  i  c  h  are 
laid  one-quarter  of  an 
inch  apart  in  mid-sum- 

Chicago  &  North-Western  Railway  -,^1-.,™    -J-V./-.TT  oV./~n-i"M 

Standard 80-lb.  Rail,A.D.  1897.  HlCl*    Wiien    tney  SnOUKl 

be  close  together  can- 
not give  the  best  results,  no  matter  how  good  the 
subsequent  maintenance  may  be.  However,  irre- 
spective of  the  care  which  joints  may  get,  they 
have  a  tendency  to  get  low.  Firstly,  because 
there  is  a  blow  at  the  opening  between  the 
rails  to  cause  this,  and  secondly,  because  the 
rolling  of  the  wheels  tends  to  lengthen  the 
head,  while  the  base  remains  the  same,  thus 


TRACK  DETAILS.  347 

arching  the  rail  to  the  detriment  of  the  joint. 
The  first  difficulty  cannot  be  wholly  avoided,  but 
possibly  the  second  might  be  partly  overcome  by 
making  the  rails  a  little  low  in  the  center.  I  do 
not  mean  by  this  that  the  rail  should  show  this 
hollow  when  in  the  track,  but  simply  that  when 
on  supports  fifteen  feet  apart,  and  seven  and  one- 
half  feet  from  each  end,  the  rail  should  be  hol- 
lowed enough  to  be  one-quarter  to  one-half  an 
inch  lower  at  the  center  than  at  the  ends."  It  is 
thought  possible  that  rails  will  ultimately  be 
welded  together  in  the  track  by  electricity,  thus 
making  them  continuous.  If  necessary  to  repair 
any  defect,  the  same  power  will  be  used  to  sever 
the  rail  and  reattach  its  ends  afterward. 


CHAPTER   X. 

USE     OF    WOOD     BY     RAILWAYS — ITS    PRESERVATIVES 
AND   SUBSTITUTES,     METAL   TIES,   ETC. 

The  kind  of  material  used  by  railways  depends 
very  much  on  circumstances.  Where  wood  is 
the  most  economical,  it  is  used.  Where  it  is  not, 
iron  and  steel  will  take  its  place  in  the  construc- 
tion of  cars,  buildings  and  other  structures.  The 
practices  of  one  country  are  not  followed  by 
other  countries  any  further  than  economy  dic- 
tates. It  is  this  that  makes  comparisons  difficult. 

In  their  early  experience  American  railways 
were  constant  and  large  consumers  of  timber, 
but  with  improved  processes,  for  making  iron 
and  steel,  these  latter  have  more  and  more 
taken  its  place.  Coal  for  fuel  has  very  gen- 
erally become  a  substitute  for  wood.  These 
changes  are  fortunate,  as  no  country  could  long 
withstand  so  great  a  drain  on  its  forestry.  We 
have  seen  many  illustrations  of  this.  Lands  once 
possessing  great  agricultural  resources,  and  the 
centers  of  a  vast  population,  are  to-day  barren 
and  desolate  because  of  it.  This  is  so  of  Palestine 
and  many  parts  of  Northern  Africa  and  Central 
Asia.  Uniformity  of  rainfall  and  an  equable 
climate  depend  upon  a  moist  atmosphere.  This 

(318) 


USE  OF  WOOD  BY  RAILWAYS.  349 

in  turn  depends  upon  the  verdure  of  a  country, 
except  in  the  immediate  vicinity  of  large  bodies 
of  water. 

In  North  and  South  America  and  in  Africa, 
systematic  effort  has  not  been  made  to  preserve 
the  forests,  nor 
economize   in    the 
use  of  wood.     Pre- 
servatives of  wood 
are  also  largely  dis- 
regarded.  The  SUb-  Bumping  Post. 

ject  invites  atten- 
tion and  interest.  Economy  in  the  use  of  wood 
is  the  first  thing  to  be  considered  in  seeking  to 
remedy  the  evil.  This  is  to  be  attained  by  the 
substitution  of  other  material  whenever  possible, 
and  by  increasing  the  durability  of  such  timber 
as  is  used. 

Much  thought  has  been  given  the  subject  of 
the  preservation  of  wood  against  the  vicissitudes 
of  weather,  the  teredo,  and  other  destructive 
agents.  But  preservatives  will  not  be  used,  how- 
ever much  we  may  deplore  the  fact,  except  when 
it  is  clearly  for  the  selfish  interests  of  the  con- 
sumer to  do  so.  Moreover,  effort  will  not  be  put 
forth  to  preserve  wood,  because  of  supposed  extra 
cost,  in  many  cases  when  it  would  clearly  be 
economy  to  do  so.  Practical  men  who  use  wood 
must  study  the  subject.  Those  interested  in 
forestry  have  done  so,  and  the  measures  of  econ- 
omy they  suggest  cover  not  only  preservatives, 
but  more  careful  use  of  wood. 


350     FINANCING,  CONSTRUCTING,  MAINTAINING. 

The  kinds  of  wood  used  vary,  of  course,  with 
every  country.  The  different  kinds  of  wood  used 
in  the  United  States  for  ties  approximate  the  fol- 
lowing proportions:  Oak,  sixty-two  per  cent.; 
chestnut,  five  per  cent.;  pine,  seventeen  per  cent.; 
cedar  (red,  white  and  California),  seven  per  cent.; 
hemlock  and  tamarack,  three  per  cent.;  cypress, 
two  per  cent.;  redwood,  three  per  cent.;  other 
kinds,  one  per  cent. 


Truss  Bridge. 

The  number  of  ties  per  mile  of  track  averages 
two  thousand  seven  hundred.  The  average  dura- 
tion of  a  tie  when  no  preservative  is  used  is  in 
the  neighborhood  of  eight  years.  The  reader  can 
estimate  for  himself  the  number  of  ties  required 
annually;  the  mass  is  enormous,  and  the  inroad 
it  makes  upon  the  forests  alarming  in  the  ex- 
treme. Those,  therefore,  who  have  suggestions 
to  make  as  to  how  the  life  of  a  tie  may  be  pro- 
longed, we  listen  to  gratefully.  Mr.  B.  E.  Fernow, 
of  the  Forestry  Division  of  the  United  States 
Department  of  Agriculture,  gives  these  directions: 
"Use  only  the  most  durable  timbers;  give  proper 
attention  to  the  cutting  and  piling  of  ties  before 
they  are  used;  pay  attention  to  the  drainage  and 


USE  OF  WOOD  BY  RAILWAYS.  351 

ballast  material  of  the  roadbed;  replace  ties  in 
the  roadbed  which  have  rotted  from  the  attack 
of  a  specific  fungus  by  ties  of  a  kind  not  liable  to 
attack  by  the  same  fungus,  so  as  to  avoid  its 
spread;  bore  spike  holes  and  fill  the  old  ones 
when  respiking,  and  use  more  permanent  rail 
fastenings;  use  tie  plates  in  order  to  reduce  flange 
cutting;  use  preserving  processes  to  lengthen  the 
life  of  the  timber;  cut  ties  at  the  right  season  of 
the  year;  increase  weight  of  rail;  maintain  care- 
ful drainage;  and,  finally,  exercise  care  in  laying 
ties." 


Snow  Shed  in  the  Sierra  Nevadas. 

Numerous  methods  are  advocated  for  the  pres- 
ervation of  wood.  Creosote,  chloride  of  zinc  and 
sulphate  of  copper  are  the  preservatives  gener- 
ally used.  In  Europe  creosoting  is  practiced 
more  than  any  other  method.  Ties  thus  treated 
are  stated  to  have  an  average  life  of  about 
twenty-five  years.  Experience  proves  that  a  tie 
prepared  in  a  particular  manner,  while  satisfac- 
tory in  one  locality,  oftentimes  fails  in  another 


352     FINANCING,  CONSTRUCTING,  MAINTAINING. 

locality.  Different  kinds  of  wood  also  require 
different  kinds  of  treatment.*  Creosoting  will 
not  be  as  beneficial  in  America  as  in  Europe, 
unless  we  make  use  of  tie  plates.  (Jreosoting 
softens  the  fiber  of  wood,  and  ties  thus  treated 
are  quickly  injured  by  the  increased  cutting  of 
the  rail  flange  when  plates  are  not  used.  Some 
method,  therefore,  which  will  harden  the  wood 
while  preventing  disintegration  is  necessary 
where  the  tie  plate  is  not  used.  Metallic  salts 
have  been  found  to  give  good  results  in  this 
direction. 

The  devices  which  railways  profitably  use  to 
prolong  the  life  of  a  tie  are  supplemented  by 
them,  in  other  directions,  with  good  results. 
Thus,  at  one  time  fences  in  the  United  States 
were  constructed  wholly  of  wood.  To-day  wire 
with,  in  many  instances,  metal  posts,  has  taken 
its  place.  Hedges  have  also  been  introduced  in 
some  districts,  but,  unfortunately,  our  climate  is 
not  favorable  to  this  form  of  fence.  In  England, 
on  the  other  hand,  hedges  are  common  and,  hap- 
pily, answer  the  double  purpose  of  beautifying 
the  landscape  and  lessening  the  outlay  of  the 
railroad  company. 

*  Wood  preservatives  do  not  act  alike  in  all  countries.  Thus 
in  India,  owing  to  sudden  changes  in  temperature  and  other 
climatic  influences,  creosoting  does  not  preserve  wood.  The 
timber  under  the  rail  decays  so  that  the  duration  of  ties  does 
not  exceed  ten  years,  except  in  the  case  of  certain  kinds  of 
wood  indigenous  to  that  country.  The  difficulty  of  preserving 
wood  in  India  has  led  to  the  extensive  introduction  of  metal 
ties.  These  latter  are  destined  to  grow  steadily  in  popularity. 


USE  OF  WOOD  BY  RAILWAYS. 


353 


Section  of  the  Chicago  &  North- Western  Railway  gravel  ballast  This  com- 
pany also  uses  stone  ballast,  as  will  be  seen  by  the  description  below.  The 
standard  of  this  company  is  as  follows: 

Thickness  of  tie,  six  inches;  surface  bearing  face,  if  sawed,  eight  inches; 
if  hewed,  six  inches;  length,  eight  feet;  distance  between  ties,  twenty-one 
inches  from  center  to  center;  kind  of  wood,  oak. 

The  roadbed  is  finished  off  for  a  width  of  ten  feet  on  each  side  of  the 
center  line  one  and  one-half  feet  below  the  grade  line,  and  sloped  uniformly 
each  way  from  the  center  line  at  the  rate  of  five-tenths  of  a  foot  in  ten  feet. 
Gravel  ballast  is  oue  foot  in  depth  from  the  bottom  of  the  tie  to  the  roadbed, 
filled  in  between  the  ties  even  with  the  top  of  the  tie  at  the  center  of  the 
track,  find  sloping  uniformly  from  the  center  of  the  track  to  a  point  one  and 
one-half  feet  outside  of  the  end  of  the  tie,  at  which  point  it  is  two  incher 
below  the  level  of  the  base  of  the  rail.  From  this  point  to  the  surface  of  the 
roadbed  the  slope  is  at  the  rate  of  one  and  one-half  to  one.  When  broken  stone 
is  used,  the  size  is  such  as  will  pass  through  a  three-inch  ring.  The  ballast  is 
one  foot  in  depth  from  the  bottom  of  the  tie  to  the  roadbed,  filled  in  between 
the  ties  even  with  the  top  of  the  tie  for  its  full  length  to  a  point  one  and  one- 
half  feet  outside  of  the  end  of  the  tie,  from  which  point  the  surface  of  the 
roadbed  is  sloped  at  the  rate  of  one  to  one. 


23    Vol.  3 


354     FINANCING,  CONSTRUCTING,  MAINTAINING. 

In  the  use  of  wood  for  telegraph  poles  little 
foresight  has  been  practiced  in  America.  Under- 
ground lines  were  not  popular,  and  but  little 
effort  was  made  to  introduce  tubular  poles.  The 
postal  authorities,  who  have  charge  of  the  tele- 
graph in  Great  Britain,  recommend  that  the 
wires  be  placed  underground,  and  it  is  probable 
that  this  will  be  done,  in  the  main,  throughout 
the  island. 

In  America,  bridges  of  steel,  iron  and  stone  are 
replacing  those  of  wood.  However,  wood  will  be 
used,  more  or  less,  so  long  as  it  is  cheap.  In  the 


Section  of  double  track,  New  South  Wales.    Top  ballast  broken  blue  stone 
2%-inch  gauge;  bottom  ballast  broken  stone,  4-inch  gauge,  hand  packed. 

construction  of  buildings,  steel,  brick  and  stone 
are  being  more  and  more  generally  used.  A 
large  amount  of  wood  is  used  in  the  construction 
of  the  rolling  stock  of  railways.  The  tendency, 
however,  is  to  substitute  metal  therefor. 

Such  are,  briefly,  the  ways  in  wrhich  wood  is 
used  and  the  means  whereby  its  durability  is 
prolonged  and  its  consumption  reduced.  The 
subject  is  one  that  invites  the  attention  of  the 
owners  and  managers  of  railroads,  and  the  pub- 
lic generally. 

The  following  description,  by  an  English  engi- 
neer, of  the  creosoting  process,  as  practiced  in  tko 


USE  OF  WOOD  B F  RAILWAYS.  355 

United  Kingdom,  is  interesting  and  instructive: 
"Creosoting  has  both  a  chemical  and  a  mechan- 
ical aspect.  Chemically,  it  may  be  looked  upon 
as  a  process  which  renders  wood  fiber  distasteful 
to  fungoid  growth  or  boring  worms  and  insects, 
the  material  being  fatal  to  such  types  of  vitality. 
Mechanically,  certain  forms  of  creosote  act  like 
so  much  wax  or  paint,  filling  up  the  pores  of  the 
wood  and  thereby  preventing  the  access  of  water 
or  air.  Clearly,  the  mechanical  effect  can  only 
endure  while  the  creosote  continues  in  the  pores. 
When  the  mechanical  process  has  been  only  half 
carried  out,  the  wood  is  protected  upon  its  exte- 
rior surface  and  to  a  depth  inward  of  half  an 
inch  and  upward,  according  to  the  extent  to 
which  the  process  has  been  carried.  The  process 
of  creosoting  is  one  requiring  care  in  the  selec- 
tion of  a  chemically  proper  creosote  and  in  the 
mechanical  process  by  which  such  creosote  is 
put  into  the  timber.  .  .  .  Timber  can  only 
be  said  to  be  properly  treated  when  it  is  pene- 
trated by  the  creosote  to  its  very  center.  Where 
complete  saturation  has  not  been  effected,  it  is 
only  a  matter  of  time  for  cracks  to  develop  and 
fungi  to  grow  upon  the  untreated  portions  thus 
exposed."* 

*  In  France  we  are  told  ties  as  delivered  are  piled  and  sea- 
soned in  the  open  air.  They  are  then  adzed  and  bored  by  a 
special  machine,  loaded  on  trucks  and  run  into  a  drying  oven, 
where  they  remain  twenty-four  hours  or  more.  After  drying  at 
a,  temperature  of  about  176  degrees  Fahr.,  they  are  run  into  a 
metal  cylinder  six  feet  three  inches  in  diameter  and  thirty-six 
feet  long,  which  is  hermetically  closed.  The  air  is  then 


356     FINANCING,  CONS  TR  UC  TING ,  MA  I  XT  A  IXIXt ; . 

Mr.  H.  W.  Reed,  in  an  interesting  treatise  on 
the  maintenance  of  timber,  thus  discourses  on 

wood  preservatives: 
•       "The  destruction  of 

\^j\^jf^K^fi^t'^i^^  j.^     timber  by  decay   is 
^^-^/<fa//7  3/no/e  Track  stone  &ii*3i. ~~^\  ascribed    by   Liebig 

Pennsylvania  RaUroad.  to  '  eremacausis  Or  a 

slow  combustion '  by 

oxidation.  Pasteur  and  Tyndall  attribute  it  to 
the  action  of  living  germs  in  the  atmosphere. 
The  latter,  in  a  series  of  experiments,  found  that 
on  placing  putrescible  materials  in  a  tube  and 
excluding  the  air,  which  is  laden  with  clouds  of 
living  germs  or  agents  of  decomposition,  putrefac- 
tion ceased  indefinitely  or  until  the  material  was 
again  exposed  to  the  atmosphere.  This  is  the 
generally  accepted  theory,  and  conforms  very 
nearly  to  the  results  of  modern  observation.  It 
has  been  determined  by  repeated  experiments 
that  a  thorough  preservative  of  timber  must 

exhausted  and  a  partial  vacuum  is  maintained  for  about  half  an 
hour.  Communication  is  then  opened  with  reservoirs  of  dead 
oil,  which  is  allowed  to  flow  in  at  a  temperature  of  176  degrees 
Fahr.,  under  pressure.  When  the  oil  ceases  to  flow  under 
moderature  pressure,  it  is  forced  in  by  a  pump  up  to  a  pressure 
of  eighty -three  pounds  per  square  inch,  and  this  pressure  is 
maintained  for  an  hour  or  an  hour  and  a  quarter.  Communica- 
tion with  the  oil  reservoirs  is  then  opened  again  and  the  excess 
of  oil  not  absorbed  by  the  timber  flows  back  into  the  reservoir. 
The  cylinders  hold  one  hundred  and  sixty-eight  ties  each.  The 
quantity  of  oil  absorbed  is  measured  by  determining  the  differ- 
ence in  volume  of  the  oil  before  and  after  operation.  The  wood 
used  is  principally  oak  and  beech.  The  oak  ties  absorb  from 
2.4  to  2.7  quarts  per  cubic  foot;  beech  ties  from  8.7  to  10  quarts 
per  cubic  foot.  The  whole  operation  takes  about  four  hours. 


USE  OF  WOOD  BY  RAILWAYS.  357 

possess  chemical  antiseptics  for  the  coagulation 
of  albumen,  and  power  as  an  insecticide,  and  also 
the  mechanical  property  of  excluding  the  atmos- 
phere by  filling  the  pores  and  surrounding  the 
fibers  with  a  substance  impenetrable  by  the 
atmosphere.  The  atmospheric  germ  theory  seems 
to  find  additional  support  in  the  fact  that  timber 
constantly  under  water  does  not  decay.  Wood 
which  is  constantly  dry  decays  slowly,  due  prob- 
ably to  the  coagulation  of  the  albumen.  Timber 
thoroughly  seasoned  by  heat  decays,  less  rapidly 
than  if  treated  by  any  other  mechanical  means, 
because  of  the  more  thorough  coagulation  of 


Pennsylvania  Railroad. 

the  albumen.  Timber  subject  to  alternate  dry- 
ness  and  moisture  decays  most  rapidly,  owing, 
doubtless,  to  the  repeated  softening  of  the  albu- 
minous substances  of  the  timber,  which  renders  it 
more  certain  of  attacks  by  atmospheric  germs. 
There  are  four  conditions  under  which  tim- 
ber is  used  which  require  different  properties  in 
the  preservatives  employed.  They  are:  First. 
Submersion  in  water  and  subjection  in  sea  water 
to  attack  of  the  Teredo  Navalis  and  other  sea 
worms.  Second.  Exposure  to  alternate  moisture 
and  dryness.  Third.  Exposure  to  the  atmosphere 
only.  Fourth.  Subjection  to  transverse  strains. 
Of  the  many  preservative  agents  employed,  those 


358     FINANCING,  CONSTRUCTING,  MAINTAINING. 

of  value  may  be  resolved  into  two  classes,  viz. :  A . 
Those  derived  from  the  distillation,  at  high  tem- 
perature, of  vegetable  tars,  albuminous  and  oily 
substances.  B.  Those  having  a  mineral  acid  as  a 
base.  Under  the  first  head  we  have  creosote  as 
the  only  known  preservative  capable  of  resisting 
for  an  indefinite  time  the  attacks  of  the  Teredo, 
destruction  by  atmospheric  germs,  and  leaving 
the  structure  of  the  timber  in  its  normal  condi- 
tion. Creosoting  is  the  only  process  known  that 
meets  all  the  requirements  of  a  wood  preservative, 


—=**  •Single  Main  &  Side  Tracfr    Sfone  &  Cinder  Ballasf.  — »— 
Pennsylvaaia  Railroad. 

only  one  element,  its  expense,  mitigating  against 
it.*  The  value  of  creosote  is  attributed  by  an 
eminent  English  authority,  Samuel  S.  Boulton, 
to  the  presence  of  acridine  ("  an  intensely  acrid 
and  pungent  substance  "  and  "  one  of  the  alka- 
loids or  bases "  of  creosote  oil),  and  naphthaline, 
a  substance  less  volatile  than  the  tar  acids;  the 
latter  is  recognized  in  the  thick,  yellow  appear- 
ance given  to  the  outside  of  creosoted  timber, 

*Wood  creosote  oil  is  much  cheaper  than  the  creosote 
made  from  dead  oil  of  coal  tar.  If  it  should  prove  equally 
effective,  or  measurably  so,  the  cost  of  creosoting  will  be  mate- 
rially reduced,  and  thus  the  chief  objection  to  its  general  use 
will  be  removed.  It  is  claimed  that  wood  creosote  oil  is  more 
soluble  than  the  dead  oil.  If  this  is  so,  its  use  would  be 
restricted  in  damp  districts. 


USE  OF  WOOD  BY  RAILWAYS.  359 

which  afterward  becomes  darker  by  exposure  to 
the  atmosphere.  These,  Mr.  Boulton,  as  well  as 
other  English  scientists,  agree  are  more  powerful 
as  permanent  preservatives  than  the  tar  acids, 
which  are  more  active  at  first  in  coagulating  the 
albumen,  but  exceedingly  unstable,  passing  away 
in  a  comparatively  short  time.  Acridine  and 
naphthaline  remain  permanently,  closing  the 
approaches,  both  chemically  and  mechanically, 
against  the  attacks  of  atmospheric  germs.  These 
substances  are  among  the  residual  products,  after 
distillation,  of  coal  tar  at  a  temperature  exceed- 
ing four  hundred  and  fifty  degrees  Fahrenheit. 
Under  the  second  head  we  have  "kyanizing," 
"burnettizing,"  and  the  "  boucherie "  process. 
The  foregoing  are  the  oldest  methods  and  have 
shown  the  best  results.  Creosoting  consists  of 
the  treatment  of  timber  with  dead  oil  or  tar; 
kyanizing,  with  bichloride  of  mercury  (corro- 
sive sublimate);  burnettizing,  with  chloride  of 
zinc;  and  the  boucherie  process  with  sulphate  of 
copper.*  Creosoting  deals  with  the  outer  sur- 

*  The  burnettizing  process  has  been  employed  with  very 
economical  results  by  the  Southern  Pacific  Railway,  in  treating 
pine  and  fir  ties.  The  great  distances  between  the  points  for 
delivery  of  ties  and  the  points  for  their  use,  and  the  expense  of 
maintaining  a  sufficient  number  of  stationary  plants,  led  to  the 
adoption  by  that  company  of  a  portable  wood  preserving  plant. 
It  has  been  found  to  work  very  satisfactorily,  and  with  great 
saving  of  expense.  In  December,  1889,  some  burnettized  ties 
were  laid  in  the  San  Joaquin  Valley,  Cal.,  near  Turlock  station, 
in  a  roadbed  of  sandy  loam,  under  sixty-pound  rails.  In  March, 
1894,  after  three  years  and  four  months  of  service,  slight  decay 
was  shown  on  the  under  side.  Ties  of  similar  timber,  untreated, 


360     FINANCING,  CONSTRUCTING,  MAINTAINING. 

face  of  the  tie,  charging  the  wood  cells  nearest 
the  surface,  varying  from  one-fourth  to  one-half 
inch  in  depth,  according  to  the  density  of  the 
wood,  the  bulk  of  the  oil  penetrating  the  ends  of 
the  ties,  which  prevents  the  further  passage  of 
water  or  air  beyond  the  outer  cells.  It  is  also 
insoluble  in  water.  The  weak  point  of  the  creo- 
sote system  for  ties  is,  that  this  outer  coating  is 
broken  by  spiking,  by  rails  cutting  in,  and  by 
picks  when  drawing  them  into  place  in  the  track, 

were  laid  at  the  same  time,  adjoining  the  burnettized  ties,  and 
of  them  the  white  and  red  fir  were  completely  decayed  and 
removed  from  the  track  after  three  years  and  nine  months' 
service;  90  per  cent,  of  the  yellow  pine  untreated  ties  was 
removed  from  the  track  after  three  years  and  nine  months  of 
service;  90  per  cent,  of  the  sugar  pine  was  removed  as  dan- 
gerous after  three  years  and  four  months.  Of  2,000  burnettized 
ties  laid  on  the  C.  E.  I.  &  P.  K.  K.,  near  Chicago,  in  1866  (pine, 
tamarack  and  cedar,  and  the  greater  part  hemlock) ,  75  per  cent, 
remained  in  the  track  after  sixteen  years  of  heavy  traffic,  and 
in  such  good  condition  that  they  would  do  service  for  two  or 
three  years  longer.  Mr.  L.  L.  Buck  reports  that  in  1882  he 
examined  a  lot  of  burnettized  maple,  beech  and  hemlock  ties 
laid  in  1866-68,  and  although  they  had  been  in  the  ground 
sixteen  years  they  were  in  such  good  condition  that  he  expressed 
the  opinion  that  they  would  probably  last  seven  or  eight  years 
longer,  especially  the  hemlock.  In  November,  1889,  a  small 
number  of  burnettized  ties  were  put  in  a  gravelly  clay  roadbed 
near  Tucson,  Ariz.,  and  after  four  years  and  eleven  months  of 
service  found  to  be  perfectly  sound.  At  the  same  time  and 
place  untreated  ties  were  laid  adjoining  the  burnettized  ties. 
Of  these,  the  Truckee  white  fir  had  decayed  to  a  depth  of  one- 
quarter  inch  on  the  under  side;  Truckee  yellow  pine  to  a  depth 
of  from  one  to  three  inches;  Shasta  white  fir  and  white  yellow 
pine  from  one  to  four  inches;  Truckee  red  fir  to  a  depth  of  one- 
half  inch;  Shasta  red  fir,  from  one  to  two  inches;  Shasta  sugar 
pine,  one  and  one-half  to  two  and  one-half  inches;  and  tama- 
rack and  sugar  pine,  from  one  and  one-half  to  three  inches. 


USE  OF  WOOD  BY  RAILWAYS.  361 

so  that  the  moisture  has  a  free  passage  to  the 
heart  of  the  tie.  Kyanizing,  burnettizing  and 
the  boucherie  processes  consist  in  the  use  of 
mineral  salts,  which,  being  soluble  in  moisture 
or  water,  are  practically  useless  for  treating 
ties,  unless  the  roadbed  is  ballasted  with  good, 


— "  Main  Double  Track  —  Grave/  Ba/tist. 
Pennsylvania  Railroad. 

clean  material  and  properly  drained.  The  track 
must  also  be  in  a  favored  location,  where  it 
will  not  be  liable  to  be  flooded.*  The  boucherie 
process  is  also  practically  useless  on  account  of 
the  chemical  action  of  the  preservative  on  iron; 
because  of  this,  ties  require  to  be  coated  with  coal 

*  To  overcome  the  liability  of  the  chloride  of  zinc  used  in 
burnettizing  to  be  washed  out,  several  processes  have  been 
introduced,  the  best  known  of  which  is  the  Wellhouse  or  zinc- 
tannin  process,  in  which  the  chloride  of  zinc  is  mixed  with  a 
small  percentage  of  glue,  and  then  subjected  to  pressure;  the 
solution  is  then  drawn  off  and  a  tannin  solution  added.  The 
glue  combines  with  the  tannin  and  forms  a  leathery  water- 
proof substance  which  closes  the  outer  pores  of  the  wood,  thus 
excluding  the  moisture  and  retaining  the  zinc.  An  especially 
valuable  feature  of  this  process  is  that  it  makes  available  tim- 
ber which  would  otherwise  be  useless.  Works  for  treating  ties 
by  the  zinc-tannin  process  have  lately  been  constructed  by  the 
Atchison,  Topeka  &  Santa  Fe  Eailroad  at  Las  Vegas,  N.  M.,  and 
by  the  Union  Pacific  at  Laramie,  Wyo.  On  the  Atchison,  To- 
peka &  Santa  Fe  it  was  estimated  that  ties  costing  35  cents 
could  be  treated  by  the  zinc-tannin  process  for  18  cents  per  tie, 
increasing  their  life  to  twelve  or  fourteen  years.  During  the 
month  of  June,  1894,  the  cost  was  reduced  to  10  cents  per  tie. 


362     FINANCING,  CONSTRUCTING,  MAINTAINING. 

tar  where  the  rails  rest,  and  the  spikes  must  be 
galvanized.*  Kyanizing,  burnettizing  and  the 
boucherie  processes  harden  the  fiber  of  the  wood, 
offering  greater  resistance  to  the  cutting  of  the 
tie  by  the  rail;  for  this  reason  better  results  are 
obtained  from  the  treatment  of  soft  wood  than 
oak  ties,  the  fiber  of  the  oak  being  too  dense  to 
readily  admit  the  antiseptic.  These  preserva- 
tives will,  however,  penetrate  the  wood  more 
thoroughly  than  creosote.  In  treating  ties,  bet- 
ter results  are 
obtained  if,  before 
creosoting,  the  ties 

Section  of  roadbed,  Chicago  &  North-Western      are    adzed   aild    the 

spike  holes  bored, 

so  as  to  allow  those  parts  to  be  treated  that  are 
otherwise  soonest  liable  to  ferment  and  decay. 
Treated  ties  should  be  laid  in  the  track  with  tie 
plates  to  prevent  the  rails  cutting  in  and  through 
the  crust  of  the  ties.  A  tie  that  costs  ninety-five 


*  In  Europe  the  boucherie  process  is  said  to  have  increased 
the  life  of  pine  ties  from  seven  to  fourteen  years,  and  there  is 
one  respect  in  which  this  process  is  superior  to  treatment  by 
chloride  of  zinc.  It  is  much  easier  to  control  the  strength  of 
the  solution  and  to  determine  by  chemical  analysis  the  actual 
quantity  of  the  antiseptic  contained  in  the  timber  after  treat- 
ment. This  is  very  important  when  the  work  is  done  by  con- 
tract, as  it  affords  less  opportunity  for  misrepresentation .  On 
account  of  the  chemical  action  which  takes  place  when  the 
solution  is  brought  in  contact,  in  course  of  manufacture,  with 
iron,  the  boilers,  pumps,  pipes,  tools,  etc.,  must  be  of  copper, 
which  materially  increases  the  cost  of  the  plant.  In  France, 
the  cost  of  treating  ties  by  this  process  on  the  Paris,  Lyons  & 
Mediterranean  Eailway  is  11.4  cents  per  tie,  while  the  cost  of 
creosoting  is  22.4  cents  for  beech  or  pine  ties. 


USE  OF  WOOD  BY  RAILWAYS.  363 

cents  in  the  track  and  that  will  last  without 
creosoting  ten  years  will,  when  creosoted,  last 
twenty  years  and  cost  one  dollar  and  fifty  cents 
in  the  track.  The  saving  effected  will  equal 
seventeen  dollars  and  sixty  cents  per  mile  per 
year.  A  tie  that  costs  seventy-three  cents  in  the 
track  and  that  will  last  without  creosoting  six 
years  will,  when  creosoted,  last  eighteen  years 
and  cost  one  dollar  and  eighteen  cents.  The 
saving  effected  will  equal  forty-eight  dollars  and 
forty  cents  per  mile  per  year.  These  figures  will, 
of  course,  vary  on  different  roads  according  to  the 
cost  of  ties,  labor  and  creosote,  but  they  are  suffi- 
cient to  illustrate  the  substantial  value  of  creo- 
soting under  the  conditions  named." 

At  the  creosoting  works  at  Houston,  Tex.,  the 
average  amount  of  oil  absorbed  is  one  and  one- 
quarter  gallons  per  cubic  foot,  and  the  average 
cost  twelve  dollars  and  fifty  cents  to  fourteen 
dollars  and  fifty  cents  per  one  thousand  feet,  B. 
M.   It  is  claimed  that 
the  ties  are  not  soft- 
ened by  the  process, 
provided  they  are 
allowed   to  stand 
about  six  weeks  after  i 
treatment  before  they 
are  used.  In  1876  four          Forty.five  Degree  crossing. 
thousand     creosoted 

Virginia  pine  ties  were  laid  on  the  main  track  of 
the  Central  Railroad  of  New  Jersey,  near  Bound 
Brook  station,  and  in  1894  the  superintendent  of 


364     FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  company  reported  that  one  thousand  were 
still  in  use  and  in  good  condition.  The  con- 
tract for  treating  these  ties  called  for  twelve 
pounds  of  dead  oil  per  cubic  foot  of  timber.  The 
creosoting  process  is  very  generally  used  in 
France  and  England.  In  the  former  country 
beech  ties  treated  in  this  way  are  claimed  to  have 
an  average  life  of  twenty-seven  years,  and  in  the 
latter  creosoted  ties  have  been  found  perfectly 
sound  after  having  been  in  the  ground  twenty- 
two  years.  In  1876  the  Paris,  Lyons  &  Mediter- 
ranean Railway,  which  had  formerly  used  sul- 
phate of  copper  for  treating  ties,  substituted  the 
creosote  process  for  beech  and  oak  ties.  The 
average  life  of  these  ties  when  taken  out  of  the 
track,  up  to  1883,  had  been  nine  and  eight-tenths 
years.  From  this  time  their  life  gradually  in- 
creased until  in  1893  it  had  reached  thirteen  and 
four-tenths  years.  The  cost  of  the  ties  which 
have  been  treated  on  this  road  has  increased 
twenty  per  cent.;  their  life  has  been  increased 
thirty-seven  per  cent.;  an  increase  of  life  of  sixty- 
five  per  cent,  is  reported  on  the  Eastern  System; 
an  increase  of  life  from  thirteen  and  seven-tenths 
years  to  twenty-four  years  is  expected  as  a  result 
of  the  change  from  sulphate  of  copper  to  creosote 
treatment  on  the  Paris,  Lyons  &  Mediterranean 
Railway.  A  process  is  proposed  by  Mr.  James  T. 
Card,  president  of  the  Chicago  Wood  Preserving 
Works  at  Chicago,  by  which  timber  is  to  be  im- 
pregnated with  chloride  of  zinc,  and  after  the 
moisture  is  partially  removed  from  the  wood  dead 


USE  OF  WOOD  BY  RAILWAYS.  365 

oil  is  to  be  injected  through  the  outer  portions  of 
it.  In  Mr.  Card's  opinion  this  Avill  give  us  all  the 
benefits  derived  from  the  oil  where  the  timber 
comes  in  contact  with  the  ground,  and  insure 
the  thorough  treatment  of  the  wood  by  the  chlo- 
ride of  zinc,  which  will  be  protected  by  the  oil 
surrounding  it,  thus  preventing  its  being  washed 
out  or  chemically  changed.  This  seems  rational, 
but  so  far  as  we  know  has  not  been  sufficiently 
tested  to  determine  its  value. 

Processes  for  preserving  wood  are,  under  the 
most  favorable  circumstances,  unsatisfactory. 
This  is  especially  so  in  regard  to  ties.  Because 
of  this,  substitutes  for  wood  are  sought.  Atten- 
tion is  turned  to  steel  and  iron.  For  many  years 
their  use  was  merely  experimental.  Much  mis- 
apprehension existed  which  greater  familiarity 
clears  away.  In  India  and  in  several  European 
countries  metal  ties  are  used  almost  entirely. 
Careful  and  painstaking  experiments  not  only 
demonstrate  their  practicability,  but  their  supe- 
riority to  wooden  ties.  Considering  the  rela- 
tive durability  of  wooden  and  metal  ties,  and  the 
expense  attending  the  changing  of  ties  in  a  track, 
metal  will  be  found  the  cheaper,  except  in  locali- 
ties where  suitable  wood  is  plentiful  and  cheap. 
A  metal  tie,  if  properly  laid,  is  more  safe  than 
one  of  wood  because  of  its  greater  strength  and 
durability.  It  affords  an  elastic  and  smooth 
track,  at  once  noiseless  and  durable.* 

*  The  use  of  steel  ties  is  strongly  advocated  for  tropical  coun- 
tries, where  the  use  of  timber  is  open  to  many  objections.  In  the 


366     FINANCING,  CONSTRUCTING,  MAINTAINING. 

The  metal  tie  has  advanced  beyond  the  experi- 
mental stage.  Among  its  advantages  are  reduc- 
tion in  cost  of  maintenance,  less  renewals  (and 
avoidance  of  the  danger  and  expense  thereof)  and 
greater  safety  because  of  greater  stability.  'The 
metal  tie  is  the  coming 
tie.  It  must  be  of  suffi- 
cient weight  to  make  a 
firm  track,  yet  easy  of 

Turn-out  Frog.  »  ,        £ 

manufacture  and  or  rea- 
sonable cost;  it  must  be  convenient  to  handle  and 
simple  in  construction ;  it  must  be  of  a  pattern 
adapted  to  the  particular  locality  in  which  it  is 
used;  it  must  be  so  made  that  it  can  be  removed 
from  or  replaced  in  the  track  without  interfering 
with  traffic.  It  is  desirable  that  it  should  be 
adopted  for  use  in  conjunction  with  wooden  ties, 
so  that  the  change  from  wood  to  iron  may  be  made. 
The  fastenings  must  be  simple  and  effective. 

A  trouble  experienced  in  the  use  of  metal  ties 
arises  from  the  wear  of  the  holes  for  fastenings. 


official  report  on  the  projected  Mombasa- Victoria  Lake  Railway, 
for  opening  up  communication  with  the  interior  of  Africa,  it  is 
recommended  that  general  use  be  made  of  steel  ties  rather  than 
creosoted  fir  or  pingado  wood,  for  the  reason  that  a  permanent 
way  of  this  construction  is  practically  indestructible  by  the 
natives  with  such  few  mechanical  appliances  as  are  to  be  met 
with  in  East  Africa.  Besides,  the  custom  of  firing  the  grass  at 
certain  periods  of  the  year,  and  the  temptation  to  use  the  tim- 
ber sleepers  for  fuel  or  hunting  purposes,  would  expose  a  line 
laid  with  timber  ties  to  many  risks.  Moreover,  white  ants  are 
numerous  in  the  country  and  exceedingly  destructive  to  wood. 
Finally,  the  steel  tie  has  no  tendency  to  float  and  be  carrit  d 
away  by  flood  water,  which  is  the  case  with  timber. 


USE  OF  WOOD  BY  RAIL WA YS.  367 

Time  will  overcome  this.  The  average  duration 
of  the  metal  tie  depends  upon  several  causes.  It 
exceeds,  however,  many  times  that  of  the  wood 
tie.  Moreover,  at  the  expiration  of  its  usefulness 
it  has  a  value,  the  same  as  old  rails.  The  wooden 
tie  when  no  longer  fit  for  use  is  practically  with- 
out value. 

At  first  metal  ties  were  made  of  iron;  later 
mild  steel  took  its  place.  Tensile  strength  de- 
pends upon  the  shape  of  the  tie.  No  particular 
pattern  has  been  universally  recognized  as  the 
best.  Metal  ties  are  not  easily  broken,  even 


Movable  Frog,  Slip  Switch. 

when  subjected  to  the  shock  of  derailment.  Dan- 
ger of  fracture,  for  a  long  time  anticipated,  has 
proven  a  groundless  fear. 

In  the  construction  of  a  metal  tie  it  is  usual 
to  make  it  of  uniform  thickness  throughout  its 
length.  A  more  economical  distribution  of  the 
metal  is,  however,  thought  possible.  In  order  to 
reduce  the  weight  of  the  tie  to  the  minimum,  the 
tendency  is  to  decrease  its  dimensions.  This 
must  not,  however,  be  carried  too  far,  since  it  is 
evident  that  vibration  and  attendant  noise  will 
be  less  with  a  heavy  than  with  a  light  tie.  The 


368     FINANCING,  CONSTRUCTING,  MAINTAINING. 

weight  of  the  tie  must  be  such  as  to  secure  sta- 
bility, lest  disproportionate  increase  of  expense 
for  maintenance  and  wear  and  tear  of  machinery 
be  incurred.  Moreover,  if  too  light  it  cannot 
withstand  the  concussions  to  which  it  is  subjected, 
without  breakage  or  distortion.  When  a  track 
is  subjected  to  extraordinarily  heavy  traffic  the 
weight  must  be  proportionate.  Experience 
shows  that  in  ordinary  gravel  or  dirt  ballast  there 
is  very  little  corrosion.  It  occurs,  however,  with 
slag  or  cinder  ballast,  and  in  tunnels  and  damp 
places.*  To  prevent  corrosion,  ties  have  "been 
painted  with  a  composition  of  oil  and  tar;  gener- 
ally, however,  they  are  used  as  they  come  from 
the  mill. 

Much  difficulty  has  been  found  in  fastening  the 
rail  to  the  tie  so  as  to  hold  the  former  securely 

and  prevent  noise 
and  wear  and  tear. 
The  fewer  parts  a 
track  has,  the  more 
pipe  culvert.  desirable,  and  the 

less  the  friction  and  expense  for  construction  and 
maintenance.  It  is  important,  therefore,  that 
whatever  fastening  is  used  it  should  not  be  com- 
plicated. It  must  be  simple,  easily  understood 
and  handled  and  such  as  to  effectively  hold  the 
rail  firm.  In  order  to  deaden  the  noise,  heavy 
paper  soaked  in  tar,  also  asbestos  sheets  and 
tarred  canvas,  have  been  placed  between  the  rail 

*This  is  owing  to  the  effect  upon  the  ties  of  the  acids  in  the 
ballast  and  sinoke. 


USE  OF  WOOD  BY  RAILWAYS.  3G9 

and  the  tie.  Such  devices  are,  however,  unnec- 
essary, if  the  fastenings  are  properly  secured. 
These  should  be  made  tight  and  kept  so. 

The  first  cost  of  the  metal  tie  greatly  exceeds 
that  of  the  wooden  tie.  This  disparity  will  be 
less  and  less  with  time.  The  saving  effected  is 
in  greater  durability  and  avoidance  of  renewals. 
The  cost  of  laying  a  metal 
tie  is  greater  than  that  of 
wood,  owing  to  difficulty 
of  handling  and  the  com- 
plications of  the  fasten- 
ings. This  is  more  than 
offset,  however,  by  the  stone Arch Culvert 
saving  in  renewals  and 

maintenance  and  the  value  of  the  tie  when  no 
longer  fit  for  use  in  the  track.  A  metal  track 
after  it  has  become  firmly  settled  is  more  stable 
than  wood.  Where  metal  is  used  it  is  more  or 
less  the  practice  to  use  wooden  ties  at  switches 
and  frogs.  There  is,  however,  no  good  reason  for 
this.  Metal,  if  laid  with  proper  fastenings  and 
well  surfaced,  is  preferable  here  as  elsewhere.  In 
connection  with  the  use  of  metal  ties,  wooden 
blocks  have  been  placed  under  the  rails  to  give 
increased  elasticity  to  the  track.  It  is  unneces- 
sary, however.  If  properly  constructed,  the  metal 
tie  is  elastic  without  extraneous  aid. 

Each  year  the  discovery  of  a  practicable  substi- 
tute for  wood  in  railway  construction  and  main- 
tenance grows  more  and  more  imperative.  Each 
year  timber  becomes  more  rare  and  costly.  Each 

24    Vol.    3 


370     FINANCING,  CONSTRUCTING 


clknatic  ^aiige*  its  de- 
struction involves  also  grow  more 
and  more  imminent.  Anything, 
therefore,  that  promises  relief  is 
worthy  of  regard.  In*this  connec- 
tion the  investigations  of  Mr.  B. 
E.  Fernow,  of  the  department  of 
forestry,  in  reference  to  wood  pre- 
servatives and  the  substitution 
therefor  of  metal  are  interesting. 
I  cannot  do  better  in  closing  what 
I  have  to  say  on  the  subject  than 
by  availing  myself  of  his  researches. 
He  aptly  points  out  that  not  only 
the  different  species  of  wood  in 
practical  use  show  varying  dur- 
ability, that  is,  resistance  to  decay, 
but  the  same  species  exhibits  vari- 
ation according  to  the  locality 
where  it  is  grown  and  the  part  of 
the  tree  from  which  the  wood  is 
taken,  and  even  its  age  seems  to 
influence  durability.  Young  wood, 
he  observes,  is  more  susceptible  of 
decay  than  old  wood;  sap  wood  is 
less  durable  than  the  heart.  The 
idea  that  young  wood  is  more  dur- 
able because  it  is  young,  which 
seems  to  prevail  among  railway 
managers,  must,  he  says,  be  con- 
sidered erroneous.  On  the  con- 
trary, young  wood,  which  contains 


USE  OF  WOOD  BY  RAILWAYS.  371 

a  large  amount  of  albuminates,  the  food  of 
fungi,  is  more  apt  to  decay,  other  things  being 
equal,  than  the  wood  of  older  timber.  Sound, 
mature,  well  grown  trees  yield  more  durable  tim- 
ber than  either  young  or  very  old  trees.  Rapid 
growth,  exhibited  in  broad  annual  rings  and  due  to 
favorable  soil  and  light  conditions,  yields  the  most 
durable  timber  in  hard  woods,  and  only  as  far  as 
the  growth  in  the  virgin  forest  has  been  slow  ought 
there  to  be  a  difference  in  favor  of  second  growth 
timber.  In  conifers,  however,  slow  growth  with 
narrow  rings,  which  contain  more  of  the  dense 
summer  wood  in  a  given  space,  yields  the  better 
timber.  In  piling  ties  he  recommends  that  they 
should  be  placed  in  squares,  with  not  over  fifty 
ties  in  a  pile,  in  such  a  manner  that  one  tier  shall 
contain  six  to  nine  ties,  separated  from  each 
other  by  a  space  equal  to  about  the  width  of  the 
tie;  the  next  tier  to  consist  of  one  tie  placed  cross- 
wise at  each  end  of  the  first  tier.  The  bottom  tie 
should  consist  of  two  ties,  or  better,  poles,  to  raise 
the  pile  from  the  ground.  The  piles  should  be 
five  feet  apart.  The  piling  ground  should  be 
somewhere  in  the  woods,  or  at  least  away  from 
the  sun,  wind  or  rain,  so  as  to  secure  a  slow  and 
uniform  seasoning.  If  dried  too  rapidly,  the  wood 
warps  and  splits,  the  cracks  collect  water,  and 
the  timber  is  then  easily  attacked  and  destroyed 
by  rot.  He  points  out  that  the  best  method  of 
obtaining  proper  seasoning,  in  a  shorter  time, 
without  costly  apparatus,  is  to  immerse  the  pre- 
pared timber  in  water  from  one  to  three  weeks, 


372   FINANCING,  CONSTRUCTING,  MAINTAINING. 

in  order  to  dissolve  and  leach  out  the  fermentable 
matter  nearest  the  surface.  This  is  best  done  in 
running  water — if  such  is  not  at  hand,  a  tank 
may  be  substituted,  the  water  of  which  needs, 
however,  frequent  change.  Timber  so  treated, 
like  raft  timber,  will  season  more  quickly  and  is 
known  to  be  more  durable.  The  application  of 
boiling  water  or  steam  is  advantageous  in  leach- 
ing out  the  sap.  Referring  to  the  decay  of  rail- 
way ties,  he  ascribes  the  lack  of  durability  to  two 
causes,  namely,  a  mechanical  one,  the  breaking  of 


Steel  Truss  Bridge. 

the  wood  fiber  by  the  flange  of  the  rail  and  by 
the  spikes,  and  a  chemical  or  physiological  one, 
the  rot  or  decay  which  is  due  to  fungus  growth. 
These  causes  work  either  in  combination  or,  more 
rarely,  independently.  The  cutting  of  the  wood 
may  be  prevented  by  the  use  of  tie  plates.  The 
damage  caused  by  the  spikes  may  be  lessened  as 
pointed  out  elsewhere.  In  reference  to  drainage 
he  suggests  that  rock  ballast  is  best  drained  and 
hence  the  best  record  comes  from  su,ch  roadbeds; 
gravel  is  next  best  and  clay  or  loam  the  worst. 
On  the  other  hand,  where  soft  wood  ties,  like 
chestnut,  are  used,  the  hard  rock  ballast,  while 


USE  OF  WOOD  BY  RAILWAYS.  373 

unfavorable  to  decay,  reduces  their  life  by  pound- 
ing and  cutting.  Sand  ballast  seems  to  vary  con- 
siderably;  a  sharp,  coarse  silicious  (not  calcareous) 
sand  with  good  under  drainage  should  be  next  to 
gravel,  while  some  reports  give  a  heavy  black  soil 
and  loam  as  better  than  sand.  The  reason  why 
sand,  although  offering  good  drainage,  is  favor- 
able to  decay,  may  be  sought  in  its  great  capacity 
for  heat,  which  induces  fermentation.  Referring 
to  wood  preservatives,  Mr.  Fernow  says  in 
France  wooden  ties  are  universally  subjected  to 


Howe  Truss  Bridge  Span 


preservatives;  that  similar  practices  are  quite 
general  in  England  and  throughout  Europe, 
caused  by  the  scarcity  of  wood  and  its  great  cost. 
He  ascribes  lack  of  interest  in  the  subject  in  the 
United  States  to  ignorance,  to  unwise  economy, 
to  cheapness  of  wooden  ties,  and  to  the  fact  that 
the  flange  cutting  of  the  rail  is  even  more 
destructive  than  decay.  He  recommends  the  use 
of  tie  plates  in  order  to  prevent  this.  The  cutting 
of  the  tie  not  only  disturbs  the  poise  of  the  track, 
but  serves  as  a  cup  in  which  to  collect  dampness. 


374     FINANCING,  CONSTRUCTING,  MAINTAINING. 

as  I  have  pointed  out  in  preceding  chapters,  there- 
by superinducing  decay.  There  are  many  differ- 
ent patterns  for  these  plates.  A  rail  chair  is  used 
in  England.  A  hard  wood  plate  let  into  the  tie 
is  also  in  use.  A  plate  of  felt  a  quarter  of  an 
inch  thick  placed  between  the  rail  and  the  tie 
has  been  used  satisfactorily  in  France.  Lead 
sunk  into  the  wood  has  also  been  used  as  a  plate. 
Where  plates  are  used  there  is  practically  no 
wear  to  the  tie.  Their  effect  is  to  secure  a  more 
even  distribution  of  rail  pressure  over  a  greater 
area  of  the  tie;  retardation  of  the  mechanical 
destruction  of  the  tie  by  cutting;  avoidance  of 
danger  of  tilting  of  rails;  prevention  of  the  lateral 
bending  of  spikes  or  screws,  thus  loosening  the 
rail;  increased  resistance  of  screws  and  spikes 
against  lateral  motion  or  the  spreading  of  the 
rails.  The  pattern  of  plate  must  be  such  as  to 
secure  these  results  most  effectively.  The  use  of 
tie  plates  with  preserving  processes  makes  a 
wooden  tie  almost  as  satisfactory  as  a  metal  one 
as  far  as  durability  and  safety  are  concerned. 
They  also  greatly  extend  the  durability  of  ties  of 
soft  wood.  Mr.  Fernow  does  not  indorse  any 
particular  preserving  process.  He  thinks,  how- 
ever, that  if  what  is  known  as  vulcanizing  (i.  e., 
subjecting  unseasoned  wood  to  a  hot,  dry  air 
under  great  pressure)  accomplishes  what  is 
claimed  for  it,  it  promises  exceedingly  favorable 
results.  The  cost  of  this  process  is  said  to  not 
exceed  three  cents  per  tie.  Its  advantages  are 
that  unseasoned  timber  is  preferably  used:  that 


375 


the  fiber  of  the  wood  is  not  weakened  by  the 
process;  that  the  timber  may  be  worked  after 
treatment  without  exposing  any  untreated  parts, 
as  the  wood  seems  to  be  permeated  through  and 
through;  that  the  timber  is  unaffected  by  atmos- 
pheric changes,  being  thoroughly  seasoned  by  the 
process.  Mr.  Fernow,  concurring  with  practical 
railway  men  in  such  matters,  points  out  that  the 


Frame  Bent  Trestle  Bridge. 


first  cost  of  material  is  frequently  not  the  most 
important  factor;  that  it  is  oftentimes  over- 
shadowed by  the  question  of  maintenance  and 
renewal ;  by  perfection  of  roadway  and  appliances 
and  the  safety  and  comfort  of  travelers.  He  there- 
fore recommends  the  use  of  preservatives  where 
wood  is  employed  and  the  adoption  of  such  other 
devices  as  are  calculated  to  lessen  the  consump- 
tion of  timber. 


376     FINANCING,  CONSTRUCTING,  MAINTAINING, 

Metal  ties  are  being  introduced  in  England, 
and  experiments  have  been  made  with  them 
by  all  the  principal  roads.  These  experiments 
are  generally  satisfactory  and  promise  impor- 
tant results.  The  railways  of  France  have  not 
officially  adopted  the  metal  tie,  but  are  experi- 
menting with  a  view  to  its  adaptability  and  the 
discovery  of  a  suitable  pattern.  M.  Vautherin,  a 
French  engineer,  has  designed  what  is  considered 
to  be,  all  in  all,  a  desirable  form.  The  use  of 
preservatives  in  France,  it  should  be  remarked  in 
passing,  has  made  substitutes  for  timber  less  nec- 
essary than  they  otherwise  would  be.  France 


JLLL 


Through  Plate  Girder  Bridge. 


finds  that  when  a  metal  tie  is  used,  tie  plates  are 
not  necessary.  French  railways  use  the  suspended 
joint,  spliced  by  fish  plates  and  four  bolts.  On  the 
outside  the  ballast  is  brought  up  even  with  the 
rail  head;  on  the  inside,  even  with  the  bottom  of 
the  rail.  No  breakage  has  occurred  in  their  ex- 
perience in  connection  with  the  use  of  metal  ties, 
nor  have  difficulties  arisen  with  the  fastenings. 
The  use  of  these  ties  is  thought  to  lessen  cost  of 
maintenance  and  to  increase  the  smoothness  and 
safety  of  the  track.  Atmospheric  agencies  do  not 
appear  to  affect  the  ties  which  are  laid  without 


USE  OF  WOOD  BY  RAILWAYS.  377 

any  coating  or  other  preparatory  measures.  When 
laid  in  tunnels  or  low  places,  however,  or  in  bat- 
last  containing  sulphurous  material,  it  is  noticed 
that  they  corrode  more  or  less. 

In  Holland  the  railroads  are,  in  the  main,  using 
metal  ties,  and  have  been  doing  so  for  several 
years,  notwithstanding  the  cheapness  of  suitable 
wood.  Great  intelligence  seems  to  have  been 
observed  in  that  country  in  connection  with  the 
use  of  metal  ties,  and  results  have  been  satisfac- 
tory from  every  point  of  view.  Of  one  hundred 
and  twenty-four  thousand  metal  ties  laid  during 
a  period  of  sixteen  years  not  one  had  to  be  re- 
moved. Ties,  after  being  in  use  for  twenty-five 
years  with  a  service  of  sixteen  trains  per  day, 
have  been  found  to  be  substantially  as  good  as 
new.  The  metal  track  is  found  to  be  safe,  elastic 
and  agreeable. 

In  Belgium  the  metal  tie  was  originally  intro- 
duced through  pressure  brought  to  bear  by  labor 
agitators  and  unions,  and  was  not  properly  con- 
sidered before  its  adoption.  Because  of  this,  its 
use  was  not  generally  satisfactory.  Later  ex- 
periments, however,  have  induced  the  govern- 
ment to  take  up  the  subject  again  more  deliber- 
ately. 

The  use  of  metal  ties  in  Germany  evinces  their 
popularity.  It  is  found  there,  as  elsewhere,  that 
great  improvements  can  be  made  in  the  original 
devices.  The  early  forms  introduced  were  too 
weak.  Longitudinal  ties  are  quite  extensively 
used  in  that  country,  but  are  being  abandoned 


378     FINANCING,  CONSTRUCTING,  MMXTMXIXG. 


because  of  added  cost  of 
maintenance  and  the  diffi- 
culty of  properly  draining 
the  track. 

The  minimum  dur- 
ability of  metal  ties  is 
placed  at  forty  years;  it 
may  be  extended  to  sev- 
enty. Information  on  the 
subject,  however,  is  ex- 
ceedingly meager.  Mis- 
taken economy  and  a  de- 
sire -to  encourage  forest 
industries  have  retarded 
2  the  introduction  of  metal 
ties  in  Germany.  Wood 
used  for  ties  is  very  gen- 
erally subjected  to  pre- 
servative processes.  Tie 
plates  are  also  generally 
used. 

Austria  and  Hungary, 
among  the  more  favored 
countries  as  regards 
abundant,  suitable  and 
cheap  timber,  while  mak- 
ing careful  experiments 
with  metal  ties,  have  not 
fully  adopted  them.  They 
are,  however,  used  upon 
many  roads  and  are  laid 
in  both  longitudinal  and 


IWK  OF   \YOOI)  BY  RAILWAYS.  379 

cross  sections.  Metal  tie  plates  are  very  gener- 
ally employed  when  wooden  ties  are  used.  They 
are  not,  however,  used  on  every  tie,  except  at 
sharp  curves.  The  spike  passes  through  the 
plate  and  holds  both  the  rail  and  the  plate. 

Metal  ties  are  used  in  Switzerland  and  highly 
esteemed.  They  are  used  mainly  on  lines  having 
the  heaviest  traffic. 


American  Plate  Girder  Overhead  Bridge.    (Side  view.) 

The  growing  scarcity  of  wood  in  Spain,  Portu- 
gal and  Italy,  and  the  probability  of  still  greater 
scarcity  in  the  future,  have  induced  those  inter- 
ested in  such  matters  to  give  attention  to  sug- 
gested substitutes  therefor,  and,  while  no  concerted 
attempt  has  been  made  to  introduce  metal  ties, 
careful  experiment  is  being  made  with  them. 
There  is  no  prejudice  against  them,  and  the  in- 
vestigations, so  far  as  they  have  been  earned  on, 
are  satisfactory.  But  so  long  as  the  first  cost  of 
wood  is  less  than  metal,  it  finds  favor  even  when 


380     FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  ultimate  cost  (taking  into  account  mainte- 
nance and  renewals)  is  greater.  However,  this  is 
the  case  to  a  greater  or  less  extent  in  every  other 
country. 

In  conclusion,  it  may  be  said  that  in  every 
country  experiments  more  or  less  careful  and 
full  are  being  made  with  metal  ties.  Out  of  these 
will  grow  practical  forms  and  efficient  methods. 

The  use  of  the  metal  tie  under  different  con- 
ditions has  conclusively  demonstrated  its  prac- 
ticability as  a  substitute  for  wood.  Its  advantages 
are  economy,  efficiency  and  safety.  The  experi- 
mental stage  has  been  passed,  as  shown  by  the 
extent  to  which  it  is  used  and  its  steadily  increas- 
ing introduction.  It  remains  for  us  to  profit  by 
this  experience,  making  use  of  the  improvements 
and  modifications  suggested  by  actual  practice. 
The  main  advantages  presented  by  a  good  system 
of  metal  track  are  reduced  expenses  for  mainte- 
nance and  renewals,  owing  to  the  solid  construc- 
tion and  the  greater  durability  of  the  parts;  a 
better  class  of  track,  owing  to  improved  fasten- 
ings, etc.,  and  the  fact  that  the  roadbed  is  not 
torn  up  (as  with  wooden  ties)  for  frequent  re- 
newals, so  that  it  gives  the  best  road  with  the 
least  amount  of  work  for  maintenance,  and 
finally  increased  safety  for  traffic,  owing  to  the 
superiority  of  the  fastenings  over  those  used  with 
wooden  ties. 

The  conclusion  of  men  who  have  given  the 
subject  most  study  is  that  if  in  comparing  the 
cost  of  different  systems  of  track  account  is 


USE  OF  WOOD  BY  RAILWAYS.  381 

taken  of  every  expense, 
namely,  first  cost,  transpor- 
tation, .  handling,  laying, 
maintaining,  renewing,  in- 
terest, and  the  value  of  the 
old  material,  there  are  few 
railroads  where  the  exclu- 
sive use  of  wood  for  ties  is 
the  cheapest.  Those  who 
possess  skill  and  experience 
in  such  matters  sum  up  the 
result  of  their  observations 
in  regard  to  the  require- 
ments of  a  successful  metal 
tie  as  follows,  namely:  It 
must  be  heavy  enough  to 
hold  the  rails  down  well  and 
make  a  firm  track;  light 
enough  to  be  of  reasonable 
cost;  must  have  metal 
enough  to  stand  wear  and 
tear  and  give  ample 
strength;  must  be  easy  of 
manufacture,  and  require  a 
minimum  of  shop  work; 
must  not  be  liable  to  lateral 
motion  in  the  ballast;  must 
be  easy  to  lay,  remove,  or 
ballast.  The  fastenings  must 
be  simple  and  efficient,  with 
as  few  parts  as  possible,  and 
capable  of  adjustment  for 


382     FINANCING,  CONSTRUCTING,  MAINTAINING. 

widening  the  gauge  at  curves,  etc.;  the  price 
must  be  such  as  to  enable  an  actual  ultimate 
economy  to  be  shown;  the  quality  of  metal  must 
be  such  as  to  sustain  shocks  without  injury;  and, 
finally,  it  must  have  sufficient  elasticity  to  give 
an  easy  riding  track. 

The  value  and  character  of  the  metal  tie  have 
been  discussed  frequently  and  exhaustively  at 
the  various  congresses  of  railways  held  in  Eu- 
rope. The  conclusions  are  that,  while  metal  ties 
present  many  favorable  and  advantageous  points, 
the  experience  with  them  has  not  been  sufficient 
to  justify  any  final  decision  in  their  favor  against 
wooden  ties.  It  is  recommended  that  each  man- 
agement should  select  two  trial  sections,  laying 
one  with  metal  ties  and  the  other  with  wooden 
ties,  both  sections  to  have  as  nearly  as  possible 
the  same  conditions  of  grade,  alignment,  road- 
bed, ballast  and  traffic;  that  the  trials  should 
last  long  enough  to  enable  definite  conclusions 
to  be  arrived  at;  that  the  special  points  to  be 
considered  should  be:  first  cost;  cost  of  mainte- 
nance; cost  of  renewals;  approximate  life  of  ties; 
effect  on  the  rails;  best  types  or  forms  of  ties, 
and  general  cost,  taking  renewals  into  account. 


CHAPTER    XI. 

MAINTENANCE    AND   OPERATION — WHAT    COST   IS    DE- 
PENDENT   UPON. 

[NOTE. — For  a  full  understanding  of  the  maintenance  and 
operation  of  railways,  a  knowledge  of  accounting  in  connection 
therewith  is  desirable.  The  reader  will  find  this  important 
brunch  of  the  subject  in  the  book  "  Disbursements  of  Bail- 
ways."] 

The  tendency  of  railway  operations  from  the 
start  has  been  to  lessen  cost  and  reduce  rates. 

The  expense  of  maintaining  a  railroad  is 
dependent  upon  cost  of  material  and  labor,  con- 
dition of  the  property,  amount  and  kind  of  traffic, 
nature  of  the  climate,  character  of  bridges,  cul- 
verts, buildings  and  platforms,  nature  and 
adequacy  of  ballast  and  drainage,  and  finally  the 
weight  and  texture  of  the  rail.  These  comprise 
the  principal  items. 

Cost  of  conducting  traffic  depends  upon  the 
grade  and  alignment  of  road,  quantity  and  nature 
of  the  traffic,  adequacy  of  the  company's  facilities, 
cost  of  labor,  character  of  the  latter,  etc. 

The  maximum  price  is  paid  for  labor  in  Amer- 
ica; the  minimum  price  in  India. 

The  rapid  development  of  railways  in  America 
is  attributable  to  the  intelligence  and  economy 
exercised  in  their  construction  and  operation,  and 

(383) 


384     FINANCING,  CONSTRUCTING,  MAINTAINING. 

to  the  fortitude  of  railway  owners  and  the  skill 
and  boundless  ambition  of  railway  managers. 

A  railway,  like  the  human  body,  is  constantly 
undergoing  change,  yet  so  gradually  as  not  to  be 
noticeable.  Not  only  does  everything  wear  out, 
but  many  things  are  put  away  while  yet  stable 
to  give  place  to  something  better.  Thus  dimin- 
utive engines  have  been  supplanted.  This  last 
change  necessitated  a  better  roadbed,  heavier 
rails,  better  fastenings  and  stronger  bridges  and 
culverts. 

Track  scales  that  answered  every  requirement 
in  the  early  history  of  carriers  have  long  since 
been  replaced  by  others  capable  of  accommodat- 
ing greater  loads  and  longer  vehicles. 

Necessity  has  been  the  mother  of  invention. 
To  need  a  thing  has  been  to  induce  its  invention 
and  introduction.  This  is  seen  in  the  truss  bridge, 
the  swivel  truck  by  which  railway  vehicles  adjust 
themselves  readily  to  the  track,  the  equalizing 
beams  of  locomotives,  by  which  their  adhesion  is 
increased  and  their  hauling  capacity  multiplied, 
and  so  on,  and  in  an  incomprehensible  number  of 
ways,  improvements  in  railway  appliances  are 
not  confined  to  any  particular  department  of  the 
service.  They  cover  every  field,  from  the  tie 
used  to  the  form  of  check  with  which  dividends 
are  paid.  They  are  seen  in  the  substitution  of 
steel  for  iron;  of  the  fish  bar  for  the  old-fashioned 
chair;  of  sixty-ton  locomotives  for  those  that 
weighed  six;  in  improved  forms  of  axles,  springs, 
splices,  spikes,  signals,  the  tread  flange  and  center 


MAINTENANCE  AND  OPERATION.  385 

of  wheels,  and  other  appliances.  Each  in  its 
way  tended  to  render  transportation  quicker, 
safer  and  cheaper,  and  therefore  more  generally 
used. 

To  know  the  cost  of  maintaining  a  particular 
property  as  compared  with  another  property,  is 
not  to  possess  anything  of  value,  unless  we  have 
accompanying  details.  Greater  outlay  one  year 
may  be  offset  by  lowered  expenses  the  succeed- 
ing year.  Differences  are  also  occasioned  by 
varying  cost  of  material.  Use  occasions  wear 
and  tear;  hence  a  property  that  is  used  much 
wears  out  more  quickly  than  one  that  is  not.  To 
compare  the  cost  of  maintenance  of  two  or  more 
roads  intelligently,  we  must  know  how  far  the 
differences  are  inherent  and  how  far  the  result  of 
management  or  traffic. 

The  cost  of  maintaining  railways  is  relatively 
less  each  year.  This  is  due  to  the  better  estab- 
lishment of  the  roadbed,  cheaper  material,* 
higher  skilled  labor  and  kindred  causes. 

Effectiveness  requires  that  ultimate  perfection 
should  be  the  aim  of  railway  management.  Long 
delays  may  intervene,  and  many  makeshifts  based 
on  the  character  of  the  business  and  the  income 
of  the  property  adopted,  but  the  building  up  of 
the  property  to  a  perfect  standard  should  be  and 
is  the  aim.  It  involves  systematic  organization; 
a  machine  capable  of  intelligent  and  consecutive 

*Iu  Great  Britain  there  was  a  decrease  of  fifty-four  per  cent, 
in  the  cost  of  material  per  mile  of  road  in  1885  as  compared  with 
187G,  and  this  notwithstanding  the  increased  mileage  of  trains. 

25    Vol.  3 


386   FINANCING,  CONSTRUCTING,  MAINTAINING. 

action.  Nothing  creditable  or  permanent  can  be 
attained  in  any  other  way.  Work  without  sys- 
tem involves  the  affairs  of  a  railroad  in  the  same 
confusion  that  similar  work  involves  other  indus- 
tries. It  is  not  an  unusual  thing  in  the  history 
of  a  railway  to  see  the  greatest  perfection  at- 
tained in  one  branch  of  the  service  while  every- 
thing else  will  be  comparatively  crude. 

This  fact,  while  illustrating  capacities,  shows 
how  distinct  the  different  departments  of  a  rail- 
road are  from  each  other,  while  acting  in  unison 
for  the  attainment  of  a  common  end.  Men  are 
not  alike  blessed  with  wisdom,  experience  or 
capability.  The  ignorant,  the  dull,  the  obstinate 
and  the  vicious,  while  not  numerous  in  railway 
life,  still  abound.  They  are  stumbling  blocks  and 
retard  the  efforts  of  their  more  amiable  brothers. 

In  the  progress  of  work  on  a  railway  much  de- 
pends on  the  general  manager;  but  capability 
here  cannot  supply  the  place  of  mediocrity,  in- 
difference or  worthlessness  elsewhere.  To  over- 
come the  inertia,  there  must  be  active  co-operation 
throughout  every  part  of  a  property,  and  its  su- 
pervision must  be  wise,  intelligent,  faithful  and 
constant.  In  no  other  way  can  a  systematic  or- 
ganization be  built  up  or  maintained  or  the  best 
results  achieved. 

Unfortunately  we  have  no  means  of  fitting  men 
for  railway  business  as  we  have  for  making  law- 
yers and  doctors.  Railway  men  are  educated  in 
the  business  after  they  enter  the  service.  This 
involves  long  apprenticeship,  capable  instruction 


MAINTENANCE  AND  OPERATION.  387 

and  competent  instructors.  Over  every  depart- 
ment of  railway  service  there  must  extend  the 
active  supervision  of  a  single  man,  supplemented 
by  capable  assistants.  In  this  way  only  can  effi- 
ciency be  secured.  An  organization  thus  effected 
must  supplement  its  labors  by  exhibits  of  results, 
so  that  comparisons  may  be  made.  Without 
these  comparisons  it  will  oftentimes  be  impossi- 
ble to  distinguish  between  capable,  industrious 
and  economical  men  and  those  of  a  contrary 
character. 

In  railway  operations,  prevention  is  a  guiding 
factor.  To  stop  the  leak  in  the  roof  promptly, 
to  strengthen  the  crumbling  wall  without  delay, 
is  to  prevent  disintegration,  very  likely  accident. 
This  applies  to  the  track,  equipment,  buildings, 
bridges,  fences  and  other  structures  of  railways 
as  much  as  it  does  to  the  houses  of  citizens.  Not 
only  is  the  destruction  of  property  prevented  by 
such  measures,  but  cost  of  maintenance  is  reduced. 
Moreover,  if  action  is  not  prompt,  those  in- 
trusted with  the  work  become  disheartened  by 
the  great  expense  and  the  immensity  of  the  field. 

The  question  of  railway  maintenance  is  by  no 
means  simple.  Its  proper  understanding  in- 
volves a  knowledge  of  every  detail  of  railway 
construction  and  operation;  acquaintance  with 
the  topography  of  the  country,  its  climate,  popu- 
lation, financial  resources  and  distance  from  the 
base  of  supply.  We  must  also  be  familiar  with 
methods  of  taxation,  the  personnel  of  the  forro, 
extent  and  nature  of  the  company's  appliances, 


388     FINANCING,  CONSTRUCTING,  MAINTAINING. 

and  the  amount  and  kind  of  its  traffic.  These 
are  fundamental.  Maintenance  means  some- 
thing more  than  preservation  of  the  track, 
bridges,  buildings  and  other  structures.  It  also 
means  the  building  up  and  maintaining  of  a 
competent  and  trustworthy  organization  and 
the  proper  grouping  of  forces,  without  which  a 
property  is  cumbersome  and  unwieldy. 

Features  incidental  to  railway  maintenance 
are  the  differences,  inherent  and  otherwise,  in 
railway  construction,  and  the  consequent  differ- 
ences in  cost  of  operating  and  maintaining  that 
follow.  They  form  a  part  of  the  question,  and 
therefore  engage  the  attention  of  those  con- 
cerned. Their  comprehension  is,  moreover,  neces- 
sary to  a  proper  comparison  of  results.  Because 
of  this  let  us  glance,  for  a  moment,  at  some  of 
the  differences  between  railroads.  „ 

The  disbursements  of  a  railroad  are  influenced, 
favorably  or  otherwise,  by  the  peculiarities  of  the 
country  through  which  it  passes,  and  until  these 
are  determined  we  cannot  estimate  the  cost  of 
maintaining  or  operating.  The  circumstances  sur- 
rounding the  cost  of  constructing  a  road  first,  and 
operating  and  maintaining  it  afterward,  change 
W7ith  every  succeeding  mile.  The  distinction  is 
more  marked  in  some  cases  than  in  others,  but  it 
exists  everywhere  and^at  all  times.  In  one  case 
it  will  be  the  difference  between  a  road  located 
upon  the  summit  of  a  mountain  and  another 
located  in  a  valley,  or  between  one  that  surmounts 
a  steep  and  dangerous  ascent  and  one  constructed 


MAINTENANCE  AND  OPERATION.  389 

upon  a  perfectly  level  plain.  In  another  case  it 
will  depend  on  the  elasticity  of  the  roadbed,  the 
sufficiency  of  the  drainage,  the  quantity  and  qual- 
ity of  the  ballast,  or  the  manner  in  which  the 
latter  is  applied.  Instances  of  difference  have  no 
limit.  However  small,  they  affect  the  cost  of 
maintaining  and  working. 

The  differences  in  cost  will  vary  from  a  few- 
cents  per  mile  to  hundreds  of  dollars.  The  ex- 
tent of  the  difference  can  only  be  anticipated  by 
a  careful  survey  of  the  property.  In  some  cases 
it  will  be  so  marked  as  to  make  itself  perceptible 
to  the  dullest  comprehension;  in  others  it  will 
be  discernible  only  to  experts  in  such  matters. 

A  road  with  costly  bridges,  high  embankments, 
precipitous  grades,  sharp  curves  and  extended 
tunnels  will,  it  is  manifest,  cost  more  to  main- 
tain and  operate  than  a  line  devoid  of  these 
costly  features. 

In  considering  relative  cost,  as  affected  by  the 
peculiarities  of  a  country,  I  can  only  notice  the 
more  important  differences.  Generally,  it  may 
be  stated  as  true  that  a  road  traversing  a  level 
country,  adapted  to  grazing  or  agriculture,  is 
more  cheaply  worked  than  a  line  differently 
located.  Its  drainage  may  be  difficult,  and  a 
supply  of  ballast  not  easily  obtainable,  except  at 
considerable  expense,  but  such  objections  are 
felt  more  or  less  on  all  roads.  They  are  more 
than  offset  by  the  obstacles  to  be  surmounted  on 
a  line  located  in  a  hilly  country.  Moreover,  a 
company  whose  property  is  favorably  located,  as 


390     FINANCING,  CONSTRUCTING,  MAINTAINING. 

regards  grades  and  alignment,  can  haul  the  max- 
imum load.  It  has  been  demonstrated  that  upon 
a  line  favorably  located  a  locomotive  can  per- 
form three  times  the  service  possible  upon  a  line 
unfavorably  situated  in  this  respect.  Moreover, 
wear  and  tear  of  equipment  is  less.  Accidents 
are  also  diminished.  The  expense  of  keeping  the 
road  in  good  condition  is  much  lighter.  Many 
other  differences  might  be  cited. 

On  the  other  hand,  the  drainage  of  a  road 
which  winds  around  the  edge  of  a  mountain 
range  is  more  easily  provided  for  than  on  one 
traversing  an  alluvial  plain. 

The  first  presents  highly  favorable  circum- 
stances for  economical  and  effective  drainage,  the 
latter  rarely  does.  To  a  superficial  observer,  the 
difference  in  cost  of  operation  and  maintenance 
between  a  track  susceptible  of  perfect  drainage 
and  one  that  is  not  is  never  rightly  estimated. 
Imperfect  drainage,  besides  being  an  evil  in 
itself,  implies  collateral  evils.  The  roadbed  is 
hard  to  maintain,  ties  rapidly  decay,  rails  speedily 
become  unfit  for  use.  A  large  force,  relatively, 
must  also  be  kept  constantly  employed,  while 
frequent  renewals  of  the  track  itself  are  required. 
Cost  is  multiplied  in  many  directions. 

For  these  reasons  engineers  are  careful  to  make 
provision  for  good  drainage,  whenever  possible. 
In  many  instances,  however,  the  nature  of  the 
soil  or  the  character  of  the  country  render  it  im- 
possible. In  such  cases  the  burden  on  the  carrier 
becomes  a  permanent  one. 


MAINTENANCE  AND  OPERATION.  391 

No  other  phase  of  railway  operations  possesses 
such  a  variety  of  aspects  as  the  question  of  drain- 
age. None  requires  greater  knowledge  and  skill. 
It  is  not  only  essential  that  the  person  in  charge 
possesses  the  practical  qualities  of  an  engineer, 
which  enable  him  to  utilize  to  the  utmost  the 
topographical  features  of  the  country,  but  he  must 
understand  the  action  of  water  upon  different 
kinds  of  soil;  must  be  able  to  distinguish  between 
that  kind  of  soil  which  will  absorb  water  without 
especial  detriment  to  the  roadbed  and  that  which 
must  be  quickly  relieved  of  the  burden.  He  must 
also  understand  the  law  of  capillary  attraction 
and  take  necessary  measures  to  remove  the  track 
beyond  the  reach  of  its  influence. 

Questions  of  temperature  are  prime  factors.  In 
a  cold  region  the  cost  of  generating  steam  is 
greater  than  in  a  milder  climate.  The  load 
hauled  is  also  less,  while  broken  and  defective 
rails  and  damaged  machinery  and  appliances 
multiply  in  number  indefinitely.  Absence  of 
elasticity  in  a  frozen  roadbed  increases  wear  and 
tear  of  equipment  and  hastens  the  destruction 
of  track.  To  these  must  be  added  the  cost  of 
keeping  the  track  free  from  snow  and  ice  in  a 
cold  .climate.  The  disbursements  on  this  latter 
account  appear  in  cost  of  snowplows,  supplies, 
wages,  use  of  locomotives  and  cars,  added  cost  of 
fences  and  snowsheds,  and,  finally,  in  delay  of 
business.  Upon  many  lines  located  within  the 
snow  belt  the  expense  of  keeping  the  track  free 
from  snow  and  ice  forms  a  considerable  proper- 


392     FINANCING,  CONSTRUCTING,  MAINTAINING. 

tion  of  the  total  cost.  From  this  and  kindred 
expenses,  lines  further  south  are  happily  free. 
On  the  other  hand,  however,  the  latter  have  their 
own  disadvantages,  such  as  rapid  deterioration 
from  insects  and  climatic  causes. 

Differences  in  cost  of  fencing  also  affect  mainte- 
nance and  operations.  Upon  some  roads  no  fences 
are  practically  required  in  America;  upon  others 
their  erection  and  maintenance  are  difficult  and 
expensive.  A  company  contiguous  to  supplies  is 
put  to  less  expense  for  fence  material  than  a  line 
located  at  a  distance.  Moreover,  the  laws  defin- 
ing a  legal  fence  are  not  the  same  in  every  state. 
Relative  cost  is  thus  further  complicated. 

Cost  of  maintaining  and  operating  is  vitally 
affected  by  the  number  and  character  of  the 
grades.  Every  foot  of  ascent  entails  extra  ex- 
pense. A  line  that  requires  a  heavy  engine  to 
move  a  minimum  load  cannot  be  worked  as 
cheaply  as  a  line  more  favorably  located.  Cost 
varies  upon  railroads  according  to  the  nature  of 
the  country,  the  judgment  exercised  in  locating 
the  line  and  the  money  expended  in  overcoming 
construction  obstacles.  Experts  do  not  agree  as 
to  the  ratio  of  expense  each  foot  of  elevation 
occasions,  but  it  is  relatively  much  greater  when 
the  rise  is  abrupt  than  when  gradual.  Thus,  cost 
of  a  maximum  grade  of  one  hundred  feet  to  the 
mile  is  more  than  where  the  grade  is  fifty  feet. 
Nor  is  the  collateral  outlay  which  gradients  entail 
relatively  the  same.  Differences  in  cost  of  main- 
taining track  are  particularly  noticeable.  Cost 


MAINTENANCE  AND   OPERATION.  393 

of  fuel,  lubricants  and  wear  and  tear  of  machinery 
are  also  heightened. 

The  curvature  of  a  track,  hardly  less  than  its 
grades,  affects  the  cost  of  maintaining  and  work- 
ing, though  the  fact  is  not  so  generally  recognized. 

Another  important  feature  is  alignment.  De- 
fective alignment  adds  to  the  cost  of  property  in 
the  first  place  and  the  expense  of  maintaining 
and  working  it  afterward.  The  inconvenience 
continues  without  sensible  diminution  until  the 
mistake  is  remedied,  but  as  defective  alignment 
oftentimes  involves  questions  of  management 
and  policy  as  well  as  cost  of  correction,  it  follows 
that  such  defects  are  generally  of  much  longer 
standing  than  they  would  be  if  they  came  within 
the  duty  of  the  practical  men  who  look  after  the 
track.  An  acute  defect  these  latter  may  remedy, 
but  errors  in  alignment  affecting  considerable 
sections  of  a  line  they  may  not  notice,  or  if  they 
do,  are  oftentimes  unable  to  demonstrate  the 
practicability  of  their  views. 

Many  other  differences  affect  cost.  Thus  a 
company  that  is  compelled,  either  by  the  nature 
of  its  traffic  or  the  peculiarities  of  its  line,  to  sever 
and  reunite  its  trains  at  intervals  is  put  to  greater 
expense  for  maintenance  and  operation  than  one 
that  does  not.  This  expense  will  vary  according 
to  the  length  of  the  haul,  the  amount  and  char- 
acter ,of  the  load  and  the  particulars  of  a  local 
nature  that  affect  the  transfer.  Such  expenses 
represent  in  a  measure,  it  may  be  said,  the  differ- 
ence between  cost  of  handling  through  and  local 


394     FINANCING,  CONSTRUCTING,  MAINTAINING. 

business.  However,  many  terminal  expenses 
involved  by  the  latter  are  wanting. 

Relative  cost  is  affected  by  density  of  population, 
more  especially  the  frequency  with  which  towns, 
villages  and  cities  occur.  It  is  also  influenced  by 
the  number  and  character  of  the  tunnels,  viaducts 
and  road  crossings.  'Every  tunnel,  viaduct  and 
road  crossing  increases  cost  in  the  same  sense 
that  a  line  dotted  with  signals  and  crowded  with 
watchmen  cannot  be  worked  as  cheaply  as  a  road 
running  through  a  country  where  these  precau- 
tions are  unnecessary. 

Anything  that  interferes  with  the  free  move- 
ment of  trains,  or  that  increases  or  diminishes  the 
speed  Jbest  suited  to  the  load  hauled,  adds  to  cost. 
Thus  the  amount  of  fuel  required  by  a  locomotive 
to  start  its  load  is  relatively  much  greater  than 
the  amount  required  to  keep  it  in  motion  once  it 
is  started.  Experts  have  estimated  the  loss  of 
power  occasioned  by  stopping  a  train  traveling 
at  the  rate  of  twenty-five  miles  an  hour  as  suffi- 
cient to  carry  it  a  mile  forward  on  its  journey. 
Consumption  of  fuel,  it  is  also  to  be  remembered, 
is  only  lessened,  not  avoided,  while  a  locomotive 
is  thus  idle.  Further  than  this,  the  wages  of  em- 
ployes experience  no  abatement,  while  the  extra 
cost  of  wear  and  tear  of  road  and  equipment,  in- 
cident to  the  interruption,  are  considerable  in 
every  case.  Finally,  it  may  be  said  that  anything 
which  retards  the  business  of  a  railroad,  increases 
its  cost  or  multiplies  the  restrictions  under  which 
its  trains  are  operated,  adds  to  the  cost  of  doing 


MAINTENANCE  AND  OPERATION.  395 

business  and  lessens  by  just  so  much  the  facili- 
ties of  the  public.  The  interests  of  the  public,  not 
less  than  owners,  require  that  railroads  should 
be  harassed  by  as  few  restrictions  as  possible. 


Particulars  of  construction  act  and  react  on 
the  operating  expenses  of  railroads.  Cost  is 
never  the  same  relatively  upon  any  two  lines. 

The  same  influences  that  contribute  to  swell 
the  first  cost  of  a  road  serve  in  the  majority  of 
cases  to  increase  its  operating  expenses  afterward. 

In  investigating  the  subject  of  railway  econ- 
omy, each  enterprise  must  be  judged  according 
to  its  environment.  In  no  other  way  can  its  sta- 
tus be  accurately  ascertained. 

The  causes  which  produce  differences  in  the 
cost  of  operating  properties  are  so  numerous  and 
so  complex  that  I  can  only  notice  the  more  im- 
portant. This  partial  analysis  will  be  useful,  not 
for  the  information  of  experts,  but  for  those 
whose  facilities  for  observing  the  multitudinous 
details  of  railway  operation  are  limited. 

The  influences  that  occasion  differences  in  cost 
of  operating  open  up  incidentally  the  whole  vista 
of  railway  administration.  I  shall  consider  but 
one  phase  here  and  only  the  more  salient  features 
of  this. 

And  first,  in  regard  to  supplies.  To  ascertain 
the  cost  of  these,  including  fuel,  the  expense  of 
handling  and  the  cost  of  transportation  must  be 
added  to  first  cost. 


396     FINANCING,  CONSTRUCTING,  MAINTAINING. 

The  first  cost  of  fuel  is  very  small  in  many 
cases,  but  the  expense  of  hauling  and  the  absence 
of  economical  facilities  for  unloading  from  the 
cars,  and  afterward  placing  it  upon  the  tenders, 
makes  the  final  cost  very  great,  much  greater 
even  than  is  discernible  from  the  accounts.  The 
expense  is  aggravated  in  the  case  of  many  com- 
panies by  their  having  no  return  load  for  their 
cars.  Much  of  the  cost  of  fuel  appears  in  the 
returns  under  foreign  headings  and  thus  remains 
unknown.  In  portraying  the  expenses  of  a  rail- 
road we  cannot,  if  we  would,  group  in  the 
accounts  or  elsewhere,  under  one  head,  all  the 
expenses  incident  to  a  particular  article  of 
material. 

To  the  first  cost  we  must  add  the  shrinkage, 
and  in  the  case  of  fuel  and  oils  this  is  very  great. 
The  cost  of  substituting  new  material  for  old,  in 
the  case  of  repairs  and  renewals,  must  also  be 
remembered.  With  many  classes  of  material  the 
cost  of  substitution  equals  or  exceeds  the  first 
cost.  It  is  considerable  under  the  most  favorable 
circumstances.  The  disbursements,  for  instance, 
that  attend  the  substitution  of  new  track  mate- 
rial for  old  material  of  the  same  kind  are  very 
great.  This  is  noticeably  so  with  rails  and  ties. 
It  is  measurably  the  same  with  machinery  and 
fixtures  that  appertain  to  bridges,  buildings  and 
other  structures. 

To  ascertain  the  cost  of  any  kind  of  material 
we  must  consider  it  relatively.  Thus,  in  weigh- 
ing the  value  of  a  particular  quality  of  fuel  we 


MAINTENANCE  AND  OPERATION.  397 

must  consider  its  heating  capacity  and  effect 
upon  the  locomotive.  These,  therefore,  and  not 
the  price  asked  for  the  coal  by  the  dealer,  finally 
determine  the  cost  of  the  article. 

To  purchase  an  article  without  considering  the 
collateral  effect  is,  in  many  cases,  to  occasion  a 
loss  out  of  all  proportion  to  the  main  transaction. 

Ability  to  pay  for  material  promptly  affects 
sensibly  the  price  for  which  it  can  be  bought. 

Interest  on  money  invested  in  supplies  also 
forms  a  part  of  cost. 

The  time  expended  upon  an  article,  and  the 
accounting  it  involves,  must  be  considered;  nor 
must  the  cost  of  storage  and  the  outlay  for  in- 
surance be  overlooked. 

Thus,  a  multiplicity  of  things  are  to  be  consid- 
ered before  the  final  cost  of  an  article  can  be 
known. 

Roads  operated  in  the  immediate  vicinity  of 
markets  buy  more  cheaply  than  lines  located  at 
a  distance.  Their  presence  exercises  a  favorable 
influence  on  the  dealer.  They  are,  moreover,  able 
to  keep  better  posted  in  reference  to  the  market. 

A  company  that  concentrates  its  purchases  can 
buy  upon  more  advantageous  terms  than  one  that 
intrusts  its  purchases  to  a  number  of  persons  or 
to  officers  not  skilled  in  the  way  of  buying 
cheaply.* 


*  No  one  ever  connected  with  a  railway  company  in  a  re- 
sponsible position,  it  may  be  said  in  this  connection,  can  have 
failed  to  be  impressed  by  the  great  importance  which  the  re- 
sponsible managers  of  railroads  attach  to  the  organization  and 


398     FINANCING,  CONSTRUCTING,  MAINTAINING. 

The  necessities  of  a  company,  real  or  imagi- 
nary, sometimes  induce  it  to  purchase  supplies 
of  inferior  quality.  When  this  is  so  the  loss 
occasioned  thereby  can  only  be  traced  indirectly, 
as  in  the  case  of  fuel,  already  referred  to.  At 
different  periods  in  the  history  of  railroads  the 
rails  were,  in  many  cases,  of  inferior  quality. 
Times  were  not  propitious,  business  was  unprof- 
itable and  the  companies  were  poor.  The  desire 
to  buy  at  a  low  figure,  therefore,  was  strong.  This 
was  particularly  true  of  the  intermediate  period 
between  the  use  of  iron  and  Bessemer  steel.  Man- 
ufacturers had,  to  a  certain  extent,  lost  the  art 
of  making  the  former  cheaply  and  well  and  were 
not  yet  able  to  produce  the  latter  at  a  rate  the 
railroads  were  able  to  pay.  The  effect  of  the  use 
of  poor  rails  at  this  time  was  quickly  discernible.* 
It  was  seen  in  many  ways  outside  of  the  cost  of 
keeping  the  track  in  repair.  It  was  perceptible 
in  the  disbursements  for  injuries;  in  the  fees  of 
coroners  and  surgeons;  in  the  account  for  losses 
and  damages  to  property;  in  expenditures  for 
legal  services,  nurses  and  medicines;  in  repairing 
broken  down  bridges  and  culverts;  in  renewals 

performance  of  the  duties  connected  with  the  purchase  of  sup- 
plies; to  the  limiting  of  the  purchases  to  as  few  officials  as 
possible,  and  to  the  placing  in  such  positions  only  men  experi- 
enced in  the  wants  of  railroads  and  in  the  knack  of  buying 
cheaply;  men  withal  accustomed  to  the  discharge  of  acts  of 
trust  and  of  long  tried  and  approved  integrity. 

*  The  length  of  time  a  rail  will  last  is  dependent  (even  upon 
a  line  having  light  traffic)  upon  its  quality,  the  care  with 
which  it  is  laid,  the  number  and  quality  of  the  ties  and  the 
character  of  the  roadbed. 


MAINTENANCE  AND  OPERATION.  399 

of  equipment,  machinery  and  tools;  in  outlay  for 
labor  of  various  kinds;  in  fuel  used,  and,  finally, 
in  diminished  receipts. 

Many  companies  were  slow  in  discovering  the 
loss  occasioned  by  the  use  of  poor  rails,  and  not 
a  few  were  dilatory  in  effecting  a  remedy  after 
the  discovery.  Why?  Because  it  requires  a 
knowledge  of  railways  that  every  proprietor  does 
not  possess,  to  enable  him  to  appreciate  the  fact 
that  unless  he  maintains  a  good  roadbed  and 
track  favorable  results  will  not  long  attend  the 
operations  of  his  property. 

The  smoothness  and  elasticity  of  a  track  affect 
directly  the  cost  of  keeping  the  rolling  stock  in 
condition,  so  that  the  cost  of  a  poor  track  is  quite 
as  apparent  in  expenditures  for  keeping  the  equip- 
ment in  serviceable  order  as  in  the  disbursements 
for  the  track  itself. 

Only  an  experienced  and  sagacious  manager 
can  withstand  the  seductive  glamour  of  an  arti- 
cle of  prime  necessity  offered  at  a  low  rate.  The 
fact  that  its  ultimate  cost,  if  of  poor  quality,  will 
be  out  of  all  proportion  to  the  temporary  saving 
is  lost  sight  of.  The  immediate  reduction  in  the 
cost  of  operating  and  the  glory  of  effecting  the 
reduction  is  too  great  for  a  weak  man  to  with- 
stand. This  would  not  be  the  case  to  the  extent 
it  is  if  so  great  a  proportion  of  the  loss  suffered 
in  consequence  of  the  purchase  of  inferior  mate- 
rial were  not  covered  up  under  foreign  headings 
and  remained,  therefore,  unsuspected.  The  track 
of  a  railway  is  the  largest  single  expense,  and  it 


400     FINANCING,  CONSTRUCTING,  MAINTAINING. 

is  in  connection  with  this  that  the  greatest,  and 
in  many  instances  the  most  unadvised,  efforts  at 
economy  are  attempted.  The  harm  that  ensues 
is  apparent  in  collateral  expenses,  but  it  is  im- 
possible to  determine  the  amount  of  these  even 
approximately.  Actual  outlay  for  track  involves 
the  cost  of  transporting  the  new  material  and  the 
removal  of  the  old,  the  cost  of  loading  and  un- 
loading, the  expense  of  handling,  the  withdrawal 
of  the  old  material  and  the  insertion  of  the  new 
in  the  track;  the  value  of  the  new  supplies,  less 
the  amount  received  for  the  old;  the  material 
destroyed  and  injured  in  making  renewals;  the 
wear  and  tear  of  tools;  in  the  delay  of  business, 
and  the  increased  wear  and  tear  arising  from 
imperfect  alignment  of  track  which  the  changes 
temporarily  occasion.  These  are  the  principal 
items.  Their  cost  to  a  company  cannot,  in 
every  case,  be  ascertained,  but  whatever  the 
amount  may  be  it  is  aggravated  by  the  use  of 
poor  rails,  whether  inadvertently  or  otherwise. 
It  is  only  by  keeping  such  facts  in  mind  that  we 
can  appreciate  the  importance  to  a  company  of 
purchasing  good  material.  Only  a  wealthy  com- 
pany, it  is  apparent,  can  do  otherwise  without 
endangering  its  safety. 

What  I  have  said  in  relation  to  inferior  rails 
applies  also  to  inferior  ties.  A  poor  rail  may  be 
sold,  but  a  tie  is  practically  worthless  when  no 
longer  fit  for  use  in  the  track.*  Besides  the  fact 

*  Huntington,  in  his  unique  treatise  on  railroad  track,  how- 
ever, points  out,  though  in  a  somewhat  forced  way,  some  of  the 


MAINTENANCE  AND  OPERATION.  401 

that  a  worn-out  tie  possesses  no  yalue,  its  removal 
is  difficult.  The  alignment  of  the  track  is  also 
seriously  disturbed.* 

The  expenses  attending  a  poor  bridge  are  rela- 
tively greater  than  those  of  a  poor  rail  or  tie. 
The  cost  of  removing  such  a  structure  may, 
indeed,  exceed  the  original  outlay.  Leaving  out 
of  consideration,  however,  the  cost  of  mainte- 
nance of  cheap  bridges,  the  incidental  outlay  they 
involve  for  persons  killed  or  injured,  property 
destroyed  or  damaged  and  the  injury  suffered  by 
equipment  (to  say  nothing  of  loss  of  revenue  a 
company  suffers  by  the  distrust  engendered  in  the 
mind  of  the  community)  is  out  of  all  proportion 
to  the  saving  effected  by  the  erection  of  an  unsafe 
structure  of  this  kind. 

In  reference  to  structures  of  a  temporary  char- 
acter, such  as  depots,  platforms,  roundhouses, 
workshops  and  water  stations,  that  we  find 

uses  to  which  old  and  worn-out  ties  may  be  put,  namely:  "  To 
patch  temporarily  broken  fences;  to  make  footings  for  washing 
embankments;  for  temporary  platforms  for  piling  rails;  fuel  for 
drying  sand  at  sand  stations;  fuel  for  sectionmen.  Sawing  up 
old  ties  for  wood  is  also  profitable  to  a  company  in  many  locali- 
ties." They  may  also  be  used  by  a  company  for  starting  fires 
and  other  purposes. 

*  Ties  manufactured  from  what  we  call  soft  woods  are  not 
only  not  able  to  withstand  the  wear  and  tear  of  a  heavy  busi- 
ness, but  they  decay  much  more  quickly  than  oak  and  other 
hard  wood  ties.  The  cost,  however,  of  transporting  the  latter 
and  inserting  them  in  the  track  is  not  greater  than  for  the 
former;  it  is,  therefore,  manifestly  for  the  interest  of  every 
company  to  use  the  latter  when  the  difference  in  the  purchase 
price  is  not  greater  than  the  subsequent  difference  in  the  length 
of  time  the  ties  will  last. 

26    Vol.  3 


402     FINANCING,  CONSTRUCTING,  MAINTAINING. 

clustered  about  many  new  enterprises,  the  inci- 
dental loss  to  the  company  erecting  them  in 
many  cases  far  exceeds  the  cost  of  a  first-class 
edifice.  It  follows,  therefore,  that  the  erection 
of  such  structures  is  inexcusable,  except  in 
those  instances  (not  so  frequent  as  supposed) 
where  the  necessities  of  a  company  render  it  un- 
avoidable. 

The  injury  to  rolling  stock  and  machinery  by 
the  use  of  inferior  lubricants  aptly  illustrates  the 
folly  of  buying  material  of  inferior  quality.  The 
difference  in  first  cost  is  oftentimes  so  marked, 
however,  as  to  secure  the  purchase  of  the  latter 
article.  When  this  is  so  the  charge  upon  the  books 
for  lubricants  appears  as  a  reduction  of  outlay 
and  is  quite  likely  to  excite  the  admiration  of 
directors  and  owners.  The  actual  cost  is  never 
known,  but  comparisons  will  exhibit  increased 
consumption.  The  destruction  engendered  will 
appear  in  the  returns  under  other  headings,  which 
seemingly  have  no  connection  with  it.  The  extra 
outlay  will  be  seen  in  disbursements  for  repairs 
and  renewals  of  equipment,  for  new  axles,  brasses 
and  other  parts  of  machinery,  and  in  all  the 
accounts  incident  to  the  working  of  trains,  such 
as  repairs  of  equipment,  disbursements  for  people 
killed  and  injured,  losses,  damages,  and  services 
of  lawyers  and  doctors.  The  increased  cost  may 
be  traced  step  by  step  through  all  the  labyrinths 
of  the  service,  in  the  stoppage  of  trains,  in  the 
diminished  usefulness  of  the  plant,  and  in  the 
myriad  of  expenses  incident  to  the  detention  of 


MAINTENANCE  AND  OPERATION.  4Q3 

business.  Every  conceivable  expense  follows  in 
the  train  of  hot  journal  boxes,  broken  axles,  torn 
up  tracks,  derailed  trains  and  kindred  mishaps 
that  ever  attend  the  use  of  poor  lubricants. 

In  connection  with  the  cost  of  wheels,  axles, 
frames,  springs,  bolts,  nuts  and  kindred  applian- 
ces, we  find,  as  in  the  case  of  oils,  that  the  relative 
cost  of  a  good  and  a  bad  article  is  not  alone 
manifest  in  the  first  price.  The  cost  of  the  poor 
article  will  further  appear  in  added  disbursements 
for  people  killed  and  injured,  losses  and  damages 
and  all  the  multitudinous  expenditures  that 
attend  accidents  to  trains. 

Other  interests,  foreign  to  the  immediate  pur- 
pose, attend  the  use  of  supplies.  It  frequently 
occurs  that  the  purchase  of  material  is  made  to 
facilitate  the  securing  of  business  or  the  placating 
of  someone.  When  this  is  so,  the  price  represents 
the  value  of  the  article  and  the  benefit  derived 
from  its  purchase.  Many  other  things,  such  as  a 
desire  to  foster  local  interests,  affect  the  source 
from  which  supplies  are  drawn,  inducing  the 
purchaser,  it  may  be,  to  pay  a  rate  above  the  mar- 
ket price.  In  such  cases,  of  course,  the  indirect 
gain  is  expected  to  offset  the  direct  loss.  Prac- 
tices of  this  kind  are  of  frequent  occurrence. 
Generally,  however,  it  may  be  said  that  the  emer- 
gency that  warrants  going  out  of  the  general 
market  to  purchase  presupposes  an  extreme 
case,  and  one,  therefore,  not  to  be  considered  as 
a  factor  in  a  general  review  of  the  procurement 
of  railwav  material. 


404     FINANCING,  CONSTRUCTING,  MAINTAINING. 

The  interests  of  a  railroad  are  identical  with 
those  of  the  country  in  which  it  operates.  It  en- 
deavors, consequently,  in  every  way  to  advance 
the  affairs  of  its  co-laborers — the  local  producer 
and  consumer.  But  this  assistance,  however  val- 
uable and  real,  never  appears  under  specific  head- 
ings on  the  books  of  the  railroad.  When  aid  is 
extended,  as  I  have  shown  in  the  purchase  of  sup- 
plies, the  added  cost  cannot  be  fixed,  under  any 
head,  in  the  accounts.  Separation,  therefore,  is 
not  attempted;  the  total  price  paid  for  the  mate- 
rial is  charged  to  operating  expenses,  although  a 
portion  might,  with  more  propriety,  be  charged 
to  traffic.  Particular  operating  accounts  are 
thus  burdened  with  disbursements  foreign  to 
their  purpose. 

Before  attempting  to  fix  the  cost  of  operating 
a  company's  property,  it  is  apparent  from  the 
foregoing,  we  must  know  the  circumstances  at- 
tending its  purchase  and  use  of  materials,  includ- 
ing prime  cost,  indirect  cost,  distance  supplies  are 
hauled,  cost  of  hauling,  service  of  equipment,  ex- 
pense of  substitution,  storage,  shrinkage,  interest, 
insurance,  etc. 

The  difference  between  affairs  as  they  exist 
and  as  they  are  supposed  to  exist  in  the  purchase 
and  use  of  supplies,  illustrates  very  fairly  the  dif- 
ference between  practice  and  theory  in  railway 
operations.  To  the  amateur  the  railway  prob- 
lem is  like  a  shallow  cistern  that  may  be  dipped 
dry  with  a  drinking  cup,  but  to  the  practical 
worker  and  thinker  it  represents,  in  its  economy, 
the  problems  of  a  mighty  sea. 


MAINTENANCE  AND  OPERA  TION.  405 

Management  of  railroads  requires  that  those 
who  direct -affairs  shall  be  men  trained  in  the 
discharge  of  business,  fitted  to  govern,  whose 
judgment  has  been  trained  by  years  of  observa- 
tion, practical  work  and  restraint.  Men  self- 
controlled  and  self-contained,  forcible,  luminous 
in  their  conception  of  great  problems,  and  yet 
capable  of  employing  simple  and  economical  ex- 
pedients. They  must  possess,  in  fact,  the  busi- 
ness ability  of  the  trader  with  the  executive  force 
of  the  general  and  statesman.  They  must  be  edu- 
cated in  minor  offices.  No  railway  can  afford  to 
educate  an  officer  in  the  position  of  an  officer;  it 
is  at  once  too  expensive  and  too  demoralizing. 


The  cost  of  working  a  property  is  greatly  af- 
fected by  the  quality  of  the  traffic  and  the  length 
of  haul.  This  is,  perhaps,  more  particularly  the 
case  with  freight  than  passenger  business,  for  the 
reason  that  the  former  entails  current  expenses 
unknown  to  the  latter. 

The  expenses  of  railway  companies  now  en- 
tailed for  loading,  unloading  and  storing  freight 
are,  in  many  respects,  foreign  to  the  original  in- 
tent and  purpose  of  common  carriers,  and,  in 
many  instances,  not  necessarily  a  part  of  their 
office. 

In  some  countries,  notably  in  Great  Britain, 
railway  companies  contract  with  teaming  com- 
panies or  employ  carts  of  their  own  to  haul 


406     FINANCING,  CONSTRUCTING,  MAINTAINING. 

merchandise  to  and  from  stations.  Much  of  the 
freight,  however,  is  loaded  by  the  shipper  directly 
upon  the  cars.*  The  freight  rate  charged  by 
English  companies  does  not  uniformly  include 
either  the  cost  of  loading,  unloading  or  covering 
the  goods.  When  such  services  are  performed  by 
the  railway  it  makes  a  special  charge  therefor. 
It  also  makes  an  additional  charge,  in  many  cases, 
for  cost  of  building  and  working  side  tracks.  In 
America,  on  the  other  hand,  it  is  usual  for  the 
railroad  companies  to  load  and  unload  freight, 
and  while  they  do  not  generally  attend  to  the  col- 
lection or  delivery  of  freight  at  terminal  points, 
they  nevertheless  place  it  in  a  secure  warehouse, 
which  they  generally  own  and  control.f 

No  direct  charge  is  made  in  America  for  load- 
ing or  unloading,  no  matter  what  the  length  of 
haul.  Nor  is  anything  exacted  specifically  for 
the  use  of  a  company's  warehouses,  except  in 
those  cases  where  goods  remain  for  an  unreason- 
able length  of  time.  A  charge  for  demurrage  is 
made  in  the  case  of  cars  that  are  not  unloaded 


*  The  box  or  inclosed  freight  car  so  universally  in  use  in 
America  is  little  known  upon  English  lines,  the  flat  or  open  car 
being  used  by  them,  merchandise  loaded  upon  it  being  covered, 
when  necessary,  with  a  tarpaulin.  This  vehicle  is  much  lighter 
than  the  box  car;  indeed,  it  is  much  shorter  and  lighter  than 
our  flat  or  open  car. 

f  The  exception  to  this  rule  is  in  the  case  of  express  com- 
panies, who  conduct  what  in  England  is  denominated  "  the  par- 
cels traffic;"  these  companies  not  only  collect  much  of  the 
freight  transported  by  them,  but  deliver  it  (in  large  towns)  to 
the  consignee,  the  charge  for  this  service  (within  certain  lim- 
its) being  embraced  in  the  general  rate. 


MAINTENANCE  AND  OPERATION.  4Q7 

within  a  specified  time,  if  it  is  the  duty  of  the 
consignee  to  unload  the  freight. 

No  charge  is  made  by  American  companies  for 
the  use  of  side  tracks. 

In  England  a  special  charge  is  made  when 
traffic  is  hauled  but  a  short  distance.  Thus,  the 
rate  for  six  miles,  or  any  fraction  thereof,  may 
be  the  same  as  for  twelve  miles.  This  is  in  addi- 
tion to  the  supplementary  charge  for  loading, 
unloading,  etc.  Our  custom  with  respect  to  this 
class  of  business  is  doubtless  in  practice  not 
materially  different,  but  the  basis  for  the  charge 
is  not  so  well  understood.  The  omission  operates 
in  favor  of  the  shipper.* 

The  practices  in  this  country  in  connection 
with  loading,  unloading  and  care  of  freight  have 
assumed  the  habit  of  a  fixed  custom,  though  the 
duty  does  not  properly  fall  within  the  province 
of  a  carrier.  This  is  demonstrated,  if  demonstra- 
tion were  necessary,  by  the  discrimination  which 
companies  make  against  particular  classes  of 
freight,  a  discrimination  the  public  acquiesces  in. 
It  is,  perhaps,  true  that  the  labor  can  be  per- 
formed by  the  railway  to  better  advantage  and 
at  less  expense  than  by  its  patron,  but  this  does 

*  In  reference  to  the  manner  of  settlement  between  the 
different  lines  for  through  traffic,  or  that  which  passes  over 
several  lines  of  railway,  it  is  said  to  be  the  custom  in  England 
to  Deduct  from  the  gross  amount  charged  for  performing  the 
service  a  specified  sum  for  terminal  expenses,  varying  in 
amount  as  between  London  and  provincial  towns;  this  sum  is 
apportioned  between  the  companies  receiving  and  delivering 
the  traffic,  after  which  the  balance  is  divided  upon  the  basis 
agreed  upon,  whatever  it  may  be. 


408     FINANCING,  CONSTRUCTING,  MAINTAINING. 

not  alter  the  fact.  It  was  at  one  time  supposed 
that  the  community  would  provide  cars  required 
to  do  business,  and  would  attend  personally  to 
the  loading  and  unloading  of  freight,  while  the 
railway  company  would  provide  the  track,  and 
in  some  cases  the  motive  power. 

It  is  the  office  of  a  carrier  to  transport  the 
freight  that  is  offered,  not  necessarily  to  load 
and  unload  it;  that  is  the  business  of  the  owner. 
However,  it  is  my  purpose  in  this  connection  to 
notice  the  custom,  not  to  suggest  its  change  or 
modification. 

Practices  are  not  uniform  as  to  the  articles 
which  owners  must  load  or  unload,  but  vary 
according  to  real  or  supposed  necessities  of  busi- 
ness. Usually,  however,  our  carriers  discrimi- 
nate only  against  coarse  articles  of  freight,  such 
as  are  bulky  and  not  easily  damaged,  such  as 
coal,  grain,  lumber,  ores,  pig  iron  and  similar 
articles. 

From  the  foregoing  it  is  apparent  that  a  com- 
pany's outlay  for  station  labor,  warehouse  and 
yard  room  is  largely  dependent  upon  the  charac- 
ter of  its  business.  If  made  up  of  freight  which 
the  carrier  undertakes  to  handle,  the  terminal 
charges  will  be  much  greater  than  in  other 
cases. 

These  charges  are  incidental  in  character  and 
contemplate  an  outlay  for  grounds,  tracks,  ware- 
houses, platforms,  yards,  elevators,  depots  and 
other  machinery  necessary  to  the  economical  and 
expeditious  discharge  of  business.  They  vary  so 


MAINTENANCE  AND  OPERATION.  4Q9 

greatly  that  before  attempting  to  compute  the 
expense  of  conducting  a  traffic  their  cost  must  be 
carefully  ascertained.. 

Terminal  facilities,  moreover,  that  cost  but 
little  at  one  point  may  involve  enormous  outlay 
at  another.  Thus,  depot  grounds  and  yard  room 
that  can  be  provided  for  a  few  dollars  in  an 
interior  town,  cost  millions  of  dollars  in  a 
great  city.  The  interest  upon  the  capital 
invested  in  these  facilities,  whatever  it  may  be, 
becomes  a  fixed  charge  upon  the  property  and 
must  not  be  overlooked  in  determining  the  cost 
of  doing  business. 

In  reference  to  cost  of  handling  different  kinds 
of  traffic,  the  greatest  difference  exists,  but  the 
extent  of  this  difference  is  little  appreciated. 
Thus,  the  expense  for  station  labor  in  connection 
with  the  movement  of  fifty  thousand  cars  of  coal, 
earning  perhaps  a  million  of  dollars,  will  hardly 
be  more  than  that  for  handling  a  few  crocks  of 
butter  or  the  worn-out  effects  of  an  itinerant 
preacher.  Differences  of  this  character  con- 
tinually occur  in  the  operations  of  railroads  and 
will  ever  confound  those  who  seek  to  make  a  law 
or  institute  a  practice  that  place  them  upon  a 
common  level.  As  soon  might  we  prescribe  a 
given  quantity  of  food,  drink,  air  or  clothes  for 
men,  without  reference  to  their  appetite,  health, 
labor  or  size.  Terminal  expenses,  permanent  and 
otherwise,  are  not  governed  by  the  revenue 
derived  from  a  business,  but  are  the  same  in  all 
cases,  whether  the  traffic  is  desirable  or  otherwise. 


410     FINANCING,  CONSTRUCTING,  MAINTAINING. 

Nor  are  terminal  expenses  affected  by  the  length 
of  the  haul.  Thus,  it  costs  as  much  to  handle  a 
consignment  of  merchandise  destined  to  a  neigh- 
boring town  as  to  a  point  a  thousand  miles  away ; 
the  number  of  laborers  is  the  same,  the  clerical 
force  the  same,  the  facilities  the  same,  the  risk  of 
accident  and  theft  the  same. 

The  through  traffic  of  railroads  may  be  said  to 
represent  the  long  haul  in  contradistinction  to 
local  business,  which  represents  the  short  haul, 
and  while  the  terminal  expenses  are  the  same  in 
either  case,  local  traffic  necessitates  frequent  stop- 
page of  trains,  with  all  the  expenses  incident 
thereto.  They  form  a  sensible  burden,  never  to 
be  lightly  considered  or  overlooked  in  estimating 
the  difficulties  and  expenses  of  operating. 

Within  certain  bounds  the  profitableness  of  a 
business  is  dependent  upon  the  length  of  haul. 
It  is  an  aphorism  in  railway  management  that 
the  equipment  of  a  company  earns  money  only 
when  in  motion/  Anything,  therefore,  which 
retards  that  motion,  acts  to  the  disadvantage  of 
a  carrier. 

To  continue:  the  station  facilities  necessary  to 
accommodate  the  suburban  travel  of  a  metro- 
politan road  must  be  quite  as  elaborate  as  for  a 
more  profitable  business — for  long  haul  traffic, 
for  instance.  The  expense  that  attends  it  is 
much  greater  than  for  ordinary  traffic,  because 
it  is  fixed  in  cities  or  their  immediate  neighbor- 
hood, where  values  have  reached  the  highest 
point.  This  business,  instead  of  paying  a  higher 


MAINTENANCE  AND   OPERATION.  41 1 

rate  than  traffic  requiring  less  costly  accommo- 
dations, is  awarded  a  less  rate.  This  difference 
is  oftentimes  more  than  is  justified  by  the  quan- 
tity handled.  A  low  rate  is  given  from  a  desire 
to  stimulate  traffic.  It  represents  also  the  differ- 
ence between  wholesale  and  retail  business. 
Suburban  residents  represent  an  average  haul 
each  day  equal  to  so  many  trains  (a  fixed  quan- 
tity), while  isolated  passengers,  gathered  at  widely 
separated  points,  represent  the  retail  element  of 
trade. 

While  it  is  true  that  terminal  expenses  inci- 
dent to  traffic  must  be  considered  in  fixing  the 
rate,  it  is  also  true  that  no  recognized  or  uniform 
practice  can  be  observed.  The  judgment  of  the 
compiler  of  the  tariff,  based  on  the  peculiarities 
of  the  business,  must  determine  the  rate  for  the 
time  being.  A  more  formal  basis  is  not  practicable. 

Few  companies  could  provide  the  terminal 
facilities  they  do  if  their  trade  were  wholly  local. 
The  profits  they  derive  from  through  business 
enable  them,  for  the  moment,  to  carry  the  bur- 
den of  the  less  profitable  traffic. 

It  is  a  generally  accepted  belief  that  the  local 
business  of  a  road  is  the  more  remunerative,  for 
the  reason  that  it  is  not  subjected  to  the  disturbing 
influences  which  surround  through  traffic.  This 
was  the  case  at  one  time,  but  long  ago  ceased  to 
be  so.  Multiplicity  of  roads  paralleling  and  in- 
tersecting each  other  oftentimes  compels  them 
to  compete  for  local  business  quite  as  much  as 
for  through  traffic. 


412     FINANCING,  CONSTRUCTING,  MAINTAINING. 

The  cost  of  soliciting  business  is  to  some  ex- 
tent a  terminal  expense.  It  varies  greatly  upon 
different  lines.  The  expense  of  one  line  for  ad- 
vertising and  soliciting  agents,  for  illustration, 
will  be  treble  that  of  another.  This  difference 
may  be  occasioned  by  the  disadvantages  of  the 
company's  line  or  the  special  character  of  the 
business. 

It  will  be  seen  from  the  foregoing  brief  and 
imperfect  consideration  of  the  subject  that  spe- 
cial items  of  cost  connected  with  the  handling  of 
traffic  cannot  be  overlooked  in  studying  the  dis- 
bursements of  railways.  This  fact  should  be  re- 
membered by  legislators  and  others  in  attempting 
to  enforce  uniform  rates  and  conditions.  Each 
company  must  be  considered  apart  and  the  con- 
ditions attending  its  traffic  duly  and  exhaustively 
studied. 


CHAPTER  XII. 

MAINTENANCE — FIXED   OPERATING   EXPENSES. 

Expenditures  do  not  grow  relatively  with  a 
traffic.  The  outlay  upon  a  heavily  worked  line 
is  not  proportionately  as  great  as  upon  a  line  less 
busy.  One  of  the  reasons  is  that  a  large  propor- 
tion of  the  disbursements  of  a  company  comes 
under  what  are  called  fixed  expenses.  Many 
expenses  of  this  character  are  not  affected  at  all, 
or  only  remotely,  by  an  increase  or  decrease  in 
business.  However,  these  expenses  are  never  the 
same  relatively  upon  different  roads.* 

The  fixed  expenses  of  a  railroad  may  be  termed 
the  minimum  cost  of  operating.  After  they  are 
provided  for,  every  dollar  of  income  a  property 
can  be  made  to  earn  without  increasing  such 
expenses,  represents,  obviously,  a  decided  gain. 
This  is  well  understood  and  represents  a  principle 

"The  term  fixed  expenses  or  charges  is  used  in  a  double 
sense  in  railway  nomenclature;  first,  it  applies  generally  to  the 
operating  expenses,  interest  and  rentals  of  railroad  companies, 
and,  second,  to  those  expenses  connected  with  the  immediate 
working  of  the  property  that  are  not  affected  at  all,  or  only 
lightly,  by  the  amount  of  its  traffic,  such  as  superintendence, 
salaries  of  station  agents,  flagmen  at  crossings,  bridge  tenders, 
etc.  The  last  named  should  be  called  "fixed  operating  expenses" 
or  "fixed  expenses,"  while  the  former  should  be  called  "fixed 
charges." 

(413) 


4 1 4      FINANCING,  CON8TR  UCTIXfl,  MAIXTA IXIXG. 

that  lies  at  the  foundation  of  the  practice  of 
granting  a  relatively  low  rate  when  the  traffic  is 
unusual  in  quantity  or  can  be  handled  without 
adding  relatively  to  cost. 

A  brief  summary  of  fixed  expenditures  may  be 
properly  given  here;  and,  first,  I  may  mention 
those  relating  to  organization.  This  must  be 
maintained  with  little,  if  any,  reference  to  the 
amount  or  profitableness  of  the  business  done. 
All  of  a  company's  affairs  are  dependent  upon  the 
preservation,  unimpaired,  of  its  legal  status. 
This  obligation  is  imperative,  and  while  the  dis- 
bursements on  this  account  may  be  small  com- 
pared with  many  others,  they  are,  nevertheless, 
considerable. 

Many  expenses  intervene,  without  much,  if  any, 
reference  to  the  amount  of  traffic.  Thus  the  mail 
must  be  carried  and  delivered  punctually,  no 
matter  how  small  it  may  be;  the  convenience  of 
the  public  must  also  be  provided  for  at  stations 
and  elsewhere,  and  the  number  of  specified  trains 
(which  the  custom  of  the  country  or  the  charter 
of  the  company  compels  it  to  operate)  must  be 
run  each  day.  In  matters  such  as  these  the 
discretion  of  the  management  is  very  limited 
indeed. 

The  outlay  incident  to  the  movement  of  trains 
is  the  same  for  wages  of  men  engaged,  whether 
the  cars  are  loaded  to  repletion  or  travel  com- 
paratively empty.  This  is  also  true,  relatively, 
of  other  train  expenses,  such  as  fuel,  oil,  lights, 
attendance,  wear  and  tear,  etc.  Someone,  also, 


FIXED  OPERATING  EXPENSES.  415 

must  be  on  hand  at  stations  to  open  the  com- 
pany's waiting  rooms,  see  that  they  are  kept 
clean  and  comfortable,  preserve  order  in  and 
about  the  buildings,  keep  the  platforms  and  track 
unobstructed,  ticket  such  passengers  as  present 
themselves,  receive  and  discharge  goods,  and  an- 
swer questions  asked  by  patrons. 

The  wages  paid  the  incumbents  of  these  offices 
must  moreover  be  such  as  to  secure  faithful  men, 
competent  to  perform  the  maximum  amount  of 
service  required.  And  so  it  is  with  the  organiza- 
tion of  the  force  as  a  whole—with  general  and 
local  officers,  superior  and  petty  heads,  including 
foremen  and  others.  Each  must,  in  his  place,  be 
competent  to  perform,  at  a  moment's  notice,  the 
greatest  amount  of  service  that  the  necessities  of 
the  company  require.  An  exigency  arises  and 
passes  in  railway  life  like  the  flight  of  an  express 
train.  There  is  no  time  for  consultation,  no  time 
to  study  text-books,  no  time  to  examine  rules 
and  regulations,  or  to  write  to  superior  officers 
for  instructions;  the  company  at  such  times  must 
have  someone  on  the  spot  competent  to  act. 
Such  necessities  must  be  provided  for  without 
reference  .to  the  general  run  of  business,  and  in 
so  far  as  this  is  so,  they  constitute  a  fixed  expense. 

An  agency  that  may,  at  any  moment,  be  called 
upon  to  handle  a  hundred  carloads  of  freight 
cannot  be  intrusted  to  the  care  of  a  person  who 
could  perhaps  manipulate  half  that  number  with 
facility,  but  would  break  down  under  greater  re- 
sponsibility. The  agent  must,  in  his  turn,  select 


416     FINANCING,  CONSTRUCTING,  MAINTAINING. 

subordinate  servants  with  a  view  to  like  contin- 
gencies. What  is  true  in  this  respect  of  the  agent 
and  his  assistants  applies  with  equal  force  to  con- 
ductors of  trains,  foremen  of  shops,  track  bosses 
and  superintendents  of  bridges.  It  applies,  with 
redoubled  force,  to  managers.  The  exigencies  of 
railway  service  require  men  of  special  training, 
of  peculiar  qualifications,  of  minute  practical 
knowledge.  There  are  no  exceptions  to  this  rule 
in  any  department  or  branch  of  the  service.  Su- 
pervisory officials,  especially  those  in  immediate 
charge  of  the  property,  must  be  as  well  skilled  as 
the  directing  manager.  They  must  possess  gen- 
eral knowledge,  as  well  as  particular  acquaintance 
with  the  immediate  position  they  hold.  This  in- 
volves intimate  acquaintance  with  the  property 
as  a  whole — its  defects,  resources  and  peculiari- 
ties. This"  presupposes  long  association,  years 
of  observation  and  thought.  Attainment  is  im- 
possible otherwise.  Without  prolonged  associa- 
tion the  knowledge  officials  bring  to  the  discharge 
of  their  duties  is  incomplete,  oftentimes  imprac- 
ticable. 

The  personnel  of  a  railroad  organization  may 
not,  therefore,  be  changed  hastily  or  unadvisedly 
without  detriment,  for  the  property  is  the  crea- 
ture of  the  operative  and  its  value  dependent 
upon  his  capacity  and  fidelity.  He  must  ever  be 
considered  in  forming  an  estimate  of  its  present 
or  prospective  value. 

In  every  department  of  railway  service  we  dis- 
cover carefully  selected  men  of  capacity  and 


FIXED  OPERATING  EXPENSES.  417 

resources,  the  superiors  of  their  fellows,  singled 
out  with  reference  to  present  and  prospective 
emergencies.  From  the  character  of  these  men 
we  may  judge  intelligently  of  the  discernment  and 
trustworthiness  of  the  managers. 

The  importance  of  the  duties  (present  and  pros- 
pective) performed  by  various  classes  of  officials 
is  apparent  in  the  compensation  allotted  them. 
The  official  in  charge  of  a  pass  high  up  on  a 
mountain  side,  or  having  the  care  of  a  difficult 
morass  or  hazardous  piece  of  track,  no  matter 
where  it  may  be  located,  is  paid  a  higher  rate  of 
wages  than  his  neighbor,  whose  skill  and  respon- 
sibility are  less.  Selections  in  every  case  are 
based  on  fitness.  A  track  foreman  who  might 
be  trusted  in  the  absence  of  danger  could  not  be 
depended  upon  to  act  with  intelligence  and  pre- 
cision in  case  of  a  wreck  or  the  washing  away  of 
a  roadbed.  A  bridge  superintendent  who  un- 
derstands how  to  keep  in  repair  the  property 
intrusted  to  his  charge  under  ordinary  circum- 
stances, might  be  exceedingly  awkward  if  called 
upon  at  a  moment's  notice  to  construct  an 
entire  structure.  In  the  same  way  a  conductor 
who  might  know  how  and  when  to  start  or 
stop  a  train,  how  tickets  should  be  collected  or 
cars  received  into  or  detached  from  a  train,  would 
not,  perhaps,  know  what  to  do  in  case  his  train 
was  thrown  from  the  track  or  lost  its  rights. 
All  these  things  are  thought  of  and  anticipated. 

In  the  selection  of  men  to  fill  petty  offices  of 
responsibility,  as  well  as  those  of  greater  degree, 

27    Vol.  3 


418     FINANCING,  CONSTRUCTING,  MAINTAINING. 

every  varying  circumstance  must  be  carefully 
considered  by  the  appointing  power.  Selection 
or  continuance  in  the  service  require,  frequently, 
extra  wages.  Thus  extra  wages  are  paid  some- 
times to  meet  exigencies  that  never  arise.  These 
we  may  term  constructive  expenditures.  They 
are  much  the  same  upon  all  lines,  without  refer- 
ence to  the  business  done. 

The  cost  of  caring  for  a  property  is  not  affected 
by  what  it  earns  to  so  great  an  extent  as  is  gen- 
erally supposed.  A  competent  and  trustworthy 
manager  must  in  any  event  be  employed  to  look 
after  its  affairs.  The  amount  paid  him  is  dictated 
by  the  extent  of  the  property  and  the  ability  and 
faithfulness  of  the  man.  This  is  true  to  a  certain 
extent  of  all  the  officers  of  a  company.  The 
salaries  of  minor  officials  are  more  dependent 
upon  the  business  done.  This  is  also  true  of  sub- 
ordinate servants,  but  a  large  proportion  con- 
stitutes a  fixed  expense,  not  dependent,  except 
remotely,  upon  the  amount  or  profitableness  of 
the  business. 

At  the  headquarters  of  every  company  an  ex- 
pensive force  must  be  maintained.  It  is  made 
up  of  assistants,  and  is  the  subsidiary  brain  of 
the  enterprise,  without  which  the  organization 
would  fall  to  pieces  of  its  own  weight.  It  con- 
sists of  skilled  men.  They  carry  on  the  general 
business  of  the  company  as  between  the  corpora- 
tion and  the  public;  also  as  between  the  former 
and  employes  on  the  line  of  the  road.  They  are, 
as  a  rule,  discreet  and  able  men,  well  disciplined 


FIXED  OPERATING  EXPENSES.  419 

in  their  offices,  and  commanding  the  respect  of  the 
public  and  the  obedience  of  the  employes  of  the 
company  on  the  line.  The  number  and  salaries 
of  these  assistants  are  not  materially  influenced 
by  the  fluctuations  of  trade,  except  when  it  ex- 
tends over  a  considerable  period  of  time.  They 
may  be  said  to  be  fixed  in  the  offices  they  occupy. 
Increase  or  decrease  of  traffic  does  not  affect 
them.  The  explanation  of  this  is  found  in  the 
difficulty  of  filling  their  places.  The  knowledge 
they  possess  is  the  result  of  laborious  training 
and  years  of  familiarity  with  their  particular 
duties.  Except  when  business  is  depressed  for  a 
very  considerable  period,  it  is  inexpedient  as  well 
as  expensive  for  a  company  to  make  any  change 
or  reduction  in  its  general  office  force.  A  reduc- 
tion of  wages  is  practicable,  but  not  a  reduction 
in  number. 

The  traffic  of  a  company  may  be  paralyzed  by 
a  great  storm,  or  its  business  disturbed  by  the 
failure  of  a  crop  or  through  the  diversion  of 
trade,  without  lessening  its  fixed  expenses. 

Up  to  a  certain  point,  addition  to  traffic  is  not 
followed  by  corresponding  increase  in  either  the 
number  or  wages  of  employes.  There  is  no  in- 
crease in  the  number  or  pay  of  watchmen  at 
crossings  and  bridges,  track  patrol,  or  persons  in 
charge  of  tunnels  or  bridges.  No  increase  in  the 
number  of  agents  at  stations,  of  the  principal 
ticket  sellers,  of  the  men  employed  in  connection 
with  the  customary  trains,  of  foremen  and  their 
assistants,  busied  in  keeping  the  track  in  order, 


420     FINANCING,  CONSTRUCTING,  MAINTAINING. 

or  of  the  force  at  shops  and  roundhouses  and 
depots  of  supply. 

When,  however,  traffic  increases  beyond  a 
certain  point,  expenditures  for  wages  will  in- 
crease beyond  what  the  profitableness  of  the 
added  traffic  warrants.  This  increase  will  con- 
tinue until  the  traffic  again  reaches  a  point 
where  the  maximum  amount  of  labor  is  ex- 
acted. 

Within  certain  limits,  the  elasticity  of  every 
organization  enables  it  to  accommodate  an  in- 
crease of  business  without  addition  to  its  number, 
just  as  a  considerable  increase  is  possible  in  the 
number  of  guests  at  a  hotel  without  any  addition 
to  the  number  of  attendants.  Let  us  suppose  the 
maximum  of  this  increase  to  be  fifty  guests.  This 
number  may  be  added  without  increased  cost  for 
service  to  the  proprietor,  but  at  this  point  the 
addition  of  a  guest  will  necessitate  the  employ- 
ment of  an  additional  clerk,  another  waiter,  an 
assistant  porter,  and  so  on  through  the  list  of 
attendants.  This  outlay  is,  of  coarse,  out  of  all 
proportion  to  the  added  income  and  has,  there- 
fore, the  effect  of  increasing  the  relative  cost  of 
operating  the  house.  It  is,  however,  unavoidable, 
and  so  it  is  in  the  working  of  railroads.  We  will 
suppose  a  passenger  train  is  added  to  the  list  of 
those  already  operated  by  a  company.  Only  a 
small  percentage  of  the  patrons  of  this  new  train 
is  made  up  of  new  passengers.  The  traffic  of  the 
line  simply  readjusts  itself  to  the  increased  facil- 
ities. The  convenience  which  the  new  train  offers 


FIXED  OPERATING  EXPENSES.  421 

the  public  will  add  a  few  passengers,  but  there  is 
no  marked  addition  to  the  business,  and  until 
there  is  an  increase  commensurate  with  the  added 
facilities  the  company  is  a  loser,  for  the  reason 
that  under  the  new  order  of  things  its  train  serv- 
ice is  performing  only  the  minimum  labor  of 
which  it  is  capable,  while  before  it  performed 
the  maximum  amount.  The  same  rule  applies  to 
freight  trains  and  is  noticeable  in  all  departments 
of  the  service.  At  a  certain  time  in  the  growth 
of  a  traffic,  it  thus  appears,  the  outlay  is  much 
greater  than  the  income.  Subsequent  growth  of 
business  may  warrant  the  increase,  or  it  may  not. 
In  determining  such  questions  (and  they  are  of 
continual  occurrence  in  the  operations  of  a  rail- 
road) the  judgment  of  the  officer  upon  whom  the 
responsibility  rests  is  sometimes  colored  and  con- 
fused, so  that  intelligent  action  is  riot  to  be  ex- 
pected in  every  case.  So  far  as  the  writer's 
observation  extends,  the  only  means  of  testing 
the  possibilities  of  a  company's  traffic  is  to  add 
new  trains. 

There  is  this  to  be  remembered  in  connection 
with  additions  made  to  the  number  of  employes 
of  a  well  appointed  railway  company  (in  contra- 
distinction to  a  new  enterprise),  its  well  disciplined 
organization  enables  it  to  utilize  the  cheapest 
quality  of  labor  of  the  kind  it  needs.  This  is 
impossible  in  the  other  case.  The  first  only 
requires  an  increase  of  mechanical  force,  not  of 
constructive  ability.  The  effect  of  such  additions 
is,  of  course,  to  reduce  the  average  cost  of  doing 


422     FINANCING,  CONSTRUCTING,  MAINTAINING. 

business;  a  consummation  every  manager  labors 
unceasingly  to  bring  about. 

The  effect  I  have  pointed  out  of  determinate 
expenses  or  cost  as  it  is  influenced  by  labor  of  a 
certain  character  is  quite  as  marked  in  other 
departments  of  the  service.  Thus,  disbursements 
for  interest  on  bonds  are  not  affected  even  re- 
motely by  fluctuations  of  business.  This  is 
equally  true  in  many  instances  of  taxes,  assess- 
ments being  based  on  the  supposed  value  of  the 
property  rather  than  upon  its  revenue  producing 
qualities. 

Many  of  the  guaranties  also  which  business 
compels  a  company  to  enter  into  are  not  affected 
one  way  or  another  by  earnings. 

The  amount  paid  for  rent  of  buildings  and 
grounds  is  only  nominally  affected  by  the  increase 
or  decrease  of  earnings.  Any  permanent  decline 
of  business  in  the  end  necessitates  a  readjustment 
of  contracts  and  leases,  but  as  agreements  con- 
nected with  buildings  and  grounds  are  usually 
entered  into  for  a  series  of  years,  the  expenses 
they  entail  cannot  be  hastily  diminished. 

Also  the  cost  to  a  company  of  keeping  its  fences, 
gates  and  crossings  in  order  is  not  increased  or 
diminished,  perceptibly,  by  the  business  it  does. 
The  amount  disbursed  for  these  purposes  is  de- 
pendent upon  other  causes,  over  which  a  com- 
pany has  very  little  control. 

The  expense  of  maintaining  the  permanent 
structures  of  a  company  depends  quite  as  much 
upon  natural  influences  as  upon  the  business 


FIXED  OPERATING  EXPENSES.  423 

done.  Under  the  most  favorable  circumstances 
bridges  and  culverts  will  crumble,  buildings  will 
fall  to  the  ground,  fences,  gates  and  crossings 
will  succumb  to  climatic  and  other  influences, 
embankments  and  cuts  will  be  rendered  unsafe, 
ditches  will  fill  up,  the  roadbed  will  require  bal- 
last and  careful  attention,  and  ties  will  decay 
and  the  rails  become  unfit  for  use.  All  these 
things  will  occur,  whether  business  be  light  or 
heavy,  if  a  constant  stream  of  money  is  not 
poured  out  day  by  day. 

The  expenses  of  a  company  also  depend  largely 
upon  the  nature  of  renewals.  These,  it  is  ap- 
parent, will  be  influenced  by  the  length  of  time 
the  property  has  been  in  operation  and  the 
thoroughness  with  which  it  was  originally  con- 
structed. 

At  first,  cost  of  maintenance  will  be  very  light 
upon  a  well  constructed  road,  but  with  the  lapse 
of  time  it  will  steadily  increase,  the  maximum 
being  reached  at  the  point  at  which  the  average 
durability  of  such  property  is  reached.  This 
period  will  vary  in  different  sections  and  under 
different  circumstances,  according  to  climate, 
nature  of  material  used  and  amount  of  busi- 
ness done.  Under  ordinary  circumstances,  the 
average  should  not  be  reached  under  ten  years, 
or  whatever  time  may  represent  the  average 
durability  of  rails,  ties,  spikes,  equipment,  plat- 
forms, fences,  buildings,  bridges,  culverts  and 
similar  property.  * 


424     FINANCING,  CONSTRUCTING,  MAINTAINING. 

Generally,  it  may  be  said  that  the  amount  of 
business  determines  the  duration  of  equipment, 
while  weight  and  speed  measurably  determine 
the  duration  of  rails. 

Turning  to  another  feature  of  the  case  (the 
machinery  of  railroads),  .the  difference  between 
the  wear  and  tear  of  that  used  and  unused  is  not 
nearly  so  great  as  it  would  seem  at  first  glance. 
The  cost  of  preserving  unemployed  machinery  in 
good  order  is  not  noticeably  less,  as  every  manu- 
facturer is  aware,  than  the  cost  of  keeping  it  in 
order  when  employed. 

The  subtle  influences  of  idleness  are  as  destruc- 
tive to  man's  work  in  this  case  as  idleness  is  to 
man  himself.  The  machinery  he  constructs  with 
such  infinite  care  and  labor  requires  constant 
attention,  otherwise  it  quickly  becomes  worthless. 

The  amount  of  fuel  necessary  to  haul  the  mini- 
mum load  of  a  train  is  a  fixed  charge.  The  fuel 
consumed  by  a  locomotive  hauling  thirty  cars  is 
not  relatively  as  great  as  when  hauling  one-third 
that  number,  yet  the  appurtenances  necessary  to 
the  successful  operation  of  the  train  are  prac- 
tically the  same;  the  lubricants  used  upon  the 
locomotive  are  substantially  the  same;  the  lights 
and  furniture  are  the  same;  the  conflagrations 
which  the  locomotive  causes  are  the  same;  the 
accidents  are  the  same;  the  number  of  incautious 
people  killed  or  injured  is  the  same;  the  num- 
ber of  cattle  run  over  and  crushed  is  the  same; 
the  number  of  switches  to  be  turned  at  meeting 
points  is  the  same;  the  wages  of  the  train  force 


FIXED  OPERATING  EXPENSES.  425 

are  the  same;  the  telegraphic  orders  that  pass 
back  and  forth  between  .different  train  officials 
are  the  same;  all  the  varied  expenses  con- 
nected with  the  use  of  water  are  practically  the 
same. 

As  I  have  stated,  the  cost  of  keeping  up  the 
organization  of  a  company  is  not  noticeably  dif- 
ferent, whether  the  business  is  large  or  small, 
productive  or  otherwise.  The  expenses  which 
the  laws  require  must  be  met  without  reference 
to  receipts;  bulletins  must  be  posted  as  the  law 
prescribes;  tariffs  must  be  promulgated,  agree- 
ments made,  notices  of  elections  posted,  trustees 
remunerated,  traveling  expenses  met,  complicated 
and  expensive  returns  rendered,  lawyers  em- 
ployed, and  insurance  duly  looked  after. 

These  expenses  are  in  the  main  inherent  and 
in  no  wise  dependent  upon  the  productiveness  of 
business.  When,  therefore,  we  see  a  partially 
loaded  train  winding  its  way  across  the  country, 
or  remark  a  yard  filled  with  idle  equipment,  we 
must  not  conclude  that  the  owner  has  reduced 
his  expenses  to  conform  to  the  business  he  is 
transacting,  or  that  it  is  possible  for  him  to  do 
so.  On  the  contrary,  we  may  truthfully  believe 
that  many  of  his  expenses  have  not  been  lessened 
at  all.  And  we  may  remember  another  fact, 
namely,  that  the  owners  are  never  disregardful 
of  the  circumstance  that  profits  arise  out  of  the 
business  that  is  earned  on  after  the  fixed  ex- 
penses have  been  met,  and  hence  in  fostering 
business  they  need  no  spur.  To  them,  therefore, 


426     FINANCING,  CONSTRUCTING,  MAINTAINING. 

may  safely  be  left  the  development  of  the  busi- 
ness of  their  lines.  Out  of  it  grows  their  profit; 
without  it  their  roads  are  worthless.  No  one  is 
^o  much  interested  as  they,  no  one  so  wise  in  the 
olution  of  vexed  questions. 


CHAPTER  XIII. 

MAINTENANCE — COST    OF    OPERATING    AFFECTED    BY 
FACILITIES. 

The  cost  of  operating  a  road  is  affected  favor- 
ably or  otherwise  according  as  its  facilities  are 
ample  or  not. 

To  enable  a  company  to  secure  the  most  favor- 
able results  possible  it  must  be  able  to  carry 
forward  its  repairs  and  renewals  at  the  most 
opportune  season  of  the  year  and  have  appliances 
fitted  to  their  economical  and  rapid  performance. 
It  must  be  in  good  condition  financially  and  pos- 
sess machinery  fitted  to  its  wants  and  adequate 
to  carry  on  its  work. 

Many  of  the  differences  noticeable  in  the  cost 
of  working  railway  properties  are  attributable  to 
differences  in  facilities. 

A  company  that  is  not  provided  with  adequate 
equipment  for  doing  its  business  suffers  many 
expenses  that  would  under  other  circumstances 
be  avoided.  In  addition  to  this  loss,  the  traffic 
that  it  cannot  for  the  moment  accommodate  will, 
when  it  can,  seek  other  channels,  and  thus  its 
revenue  will  be  lost.  Moveover,  current  expenses 
will  be  increased  in  many  cases,  while  loss  of 
business  will  swell  the  percentage  of  operating 
expenses  to  revenue. 

(427) 


428     FINANCING,  CONSTRUCTING,  MAINTAINING. 

A  superabundant  equipment,  on  the  other  hand, 
is  unprofitable  to  its  owner.  Its  possession  in- 
volves loss  of  interest  on  cost  and  the  expense  of 
keeping  it  in  order.  In  addition  to  this,  the  effort 
to  find  employment  for  it  is  quite  likely  to  lead 
its  owners  into  excesses,  of  one  kind  or  another, 
but  mainly  in  the  direction  of  unnecessary  rate 
cutting  and  other  foolish  competitive  efforts. 

The  disposition  of  railway  companies  to  en- 
croach upon  each  other,  coupled  with  a  belief 
inherent  in  the  breasts  of  many  of  those  who 
serve  them  that  they  can  create  business,  has 
been  the  cause  of  many  of  the  disasters  that  have 
wrecked  railway  properties. 

What  I  have  said  in  reference  to  the  necessity 
of  restricting  the  machinery  and  rolling  stock  of 
a  company  within  necessary  bounds,  applies 
equally  to  its  property  as  a  whole.  While  a  prop- 
erty must  be  maintained  at  a  point  commensurate 
with  the  needs  of  business,  it  must  stop  there. 
Contingent  wants  that  may  never  occur  should 
not  be  anticipated,  but  left  to  be  met  when  the 
exigency  arises. 

While  owners  thus  restrict  themselves  they 
will  remember  that  prosperity  cannot  be  attained 
or  maintained  without  adequate  facilities.  When 
needs  are  inadequately  provided,  revenue  that 
should  accrue  for  extending  and  strengthening 
the  property  is  lost.  A  company  thus  unhappily 
situated  cannot  compete  successfully  with  an 
alert  rival.  It  is  avoided  by  many  who  would, 
under  other  circumstances,  give  it  support,  while 


FACILITIES  AFFECT  COST  OF  OPERATING.      429 

its  expenses  are  swollen  unnecessarily  by  its 
improvidence. 

Railway  managers,  it  may  be  said,  understand 
the  importance  of  keeping  a  property  in  good 
condition.  The  difficulty  is,  and  always  will  be, 
to  make  the  owners  equally  alive  to  the  fact. 
Absorbed  in  the  prospect  of  a  dividend,  secure  in 
the  belief  that  the  management  will  provide  the 
necessary  ways  and  means  for  meeting  renewals 
and  improvements,  they  lack  apprehension  and 
interest.  They  do  not  refuse  to  make  provision 
for  the  company's  wants,  they  simply  ignore  the 
matter.  To  meet  together  from  time  to  time  and 
authorize  an  expected  dividend,  is  too  often  the 
consummation  of  earthly  responsibility  on  their 
part.  They  listen  with  approval  to  the  remarks 
of  the  chairman,  congratulate  the  manager  upon 
his  energy  and  efficiency,  and  disperse,  leaving 
him  to  get  along  as  best  he  can.  Thus,  his  wishes 
are  disregarded  and  the  strength  of  the  property 
wasted.  The  truthfulness  of  this  is  apparent  in 
many  ways  and  it  is  needless  to  say  that  the 
losses  resulting  are  always  disproportionate  to 
the  saving  effected. 

Innumerable  instances  might  be  cited,  if  neces- 
sary, to  illustrate  the  necessity  of  a  company 
supplying  itself  with  needed  appliances.  Thus,  a 
company  that  does  not  possess  adequate  tracks, 
convenient  sidings  or  sufficient  yard  room  can- 
not handle  its  traffic  with  the  celerity  and 
economy  it  could  if  it  possessed  such  facilities. 
Again,  the  company  that  is  able  to  make  its  track 


430     FINANCING,  CONSTRUCTING,  MAINTAINING. 

repairs  and  renewals  at  the  period  of  the  year 
most  advantageous  for  such  work  will  be  able, 
manifestly,  to  do  so  more  economically  than  its 
less  fortunate  neighbor.  It  is  essential,  above  all 
things,  to  the  prosperity  of  a  company,  that  it 
should  be  able  to  make  its  repairs  and  renewals 
as  occasions  for  them  arise.  An  unsafe  bridge, 
an  insecure  culvert,  or  a  defective  axle  or  wheel 
may  involve  the  destruction  of  a  train  which, 
with  collateral  losses,  will  amount  to  thousands 
of  dollars.  And  it  must  be  remembered  that  the 
losses  that  result  to  a  company  from  accidents  of 
this  kind  can  never  be  known,  for  the  reason  that 
they  entail  loss  of  public  confidence  in  the 
methods  of  a  company.  Thus,  to  the  known  loss 
there  must  be  added  indirect  loss  occasioned  by 
diversion  of  traffic. 

It  is  in  details  of  operation  that  losses  accruing 
from  improvident  management  are  most  marked. 
Thus,  a  battered  rail  in  the  track  of  a  busy  line 
will  so  rack  the  equipment  passing  over  it  that 
the  cost  of  repairs  will  many  times  outweigh  the 
value  of  a  new  rail.  The  same  is  true  of  a  line 
imperfectly  ballasted,  or  one  where  the  align- 
ment is  wrong. 

The  cost  of  keeping  locomotives  and  machinery 
in  good  condition  is  very  much  dependent  upon 
the  carefulness  with  which  they  are  kept  cleaned 
and  housed  when  not  in  use.  The  rolling  stock 
that  is  kept  well  painted  and  in  good  repair  is  not 
so  expensive  to  maintain  as  the  equipment  that 
is  neglected  and,  while  present  outlay  for  repairs, 


FACILITIES  AFFECT  COST  OF  OPERATING.    431 

cleaning,  housing  and  painting  may  be  a  burden, 
it  will  result  in  more  satisfactory  returns  to 
owners  than  a  contrary  course. 

What  I  have  said  in  reference  to  machinery 
and  rolling  stock  applies  to  every  branch  of  the 
service.  Thus,  the  increased  disbursements  to 
meet  interest  on  money  expended  for  overhead 
bridges  or  viaducts  at  busy  points  is,  in  many 
cases,  more  than  counterbalanced  by  freedom 
from  accidents  and  saving  in  wages  and  other 
expenses. 

The  wisdom  of  providing  needed  appliances  for 
conducting  business  is  perceptible,  everywhere, 
in  reduced  expenses.  Thus,  the  introduction  of 
a  new  piece  of  machinery,  a  copying  press,  a  pat- 
ent ink,  a  new  blank  or  other  contrivance  in- 
tended to  simplify  or  cheapen,  frequently  renders 
a  reduction  of  the  force  possible,  or  prevents  an 
increase  otherwise  unavoidable.  Innumerable 
illustrations  of  this  nature  might  be  cited. 

The  usefulness  and  perpetuity  of  a  plant  is  in- 
definitely heightened  and  prolonged  by  its  main- 
tenance at  a  high  state  of  efficiency.  This  is 
particularly  the  case  with  machinery  and  equip- 
ment, as  I  have  noticed.  Such  property  should 
be  maintained  at  the  maximum  state  of  efficiency. 
The  life  of  a  car,  locomotive  or  stationary  engine 
may  be  greatly  prolonged  by  prompt  repair  of 
the  various  parts  as  rendered  necessary,  while 
neglect  will  hasten  the  general  breaking  up. 
The  necessity  of  maintaining  property  is  well 
understood  by  managers;  but  they  are  often 


432    FINANCING,  CONSTRUCTING,  MAINTAINING. 

overruled  in  the  matter,  not  being  allowed  the 
funds  necessary  to  carry  on  needed  repairs. 
There  can  be  no  doubt  of  the  shortsightedness 
of  such  a  policy,  and  a  company  thus  adminis- 
tered is  an  unsafe  enterprise  to  invest  in. 


CHAPTER   XIV. 

MAINTENANCE — PROPER     BASIS   OF   RAILWAY 
~  TAXATION. 

Questions  attending  the  taxation  of  railway 
property  are  most  perplexing.  It  is  hard  to  con- 
ceive of  a  basis  that  will  not,  under  conditions 
likely  to  occur,  work  hardship  to  either  the  state 
or  the  carrier.  If  the  tax  is  based  upon  realty, 
the  difficulty  of  determining  the  value  thereof  is 
apparent.  If  based  upon  gross  earnings,  the 
temptation  of  the  state  to  abuse  the  opportunity 
is  a  constant  menace. 

In  fixing  the  tax,  it  is  apparent  a  different  basis 
should  be  found  from  that  in  force  in  the  case  of 
private  property,  for  the  reason  that  railroads  are 
surrounded  by  restrictions  (not  known  in  other 
cases)  which  greatly  retard  their  earnings  capacity. 
These,  it  is  manifest,  must  be  carefully  considered. 
Many  methods  of  taxation  are  in  force.  Differ- 
ences are  as  prevalent  here  as  in  other  matters 
affecting  the  operation  of  railways.  A  descrip- 
tion, however,  of  the  systems  of  taxation  of  a  few 
representative  governments  will  be  interesting. 

The  Belgian  system  suggests  itself  first.  It  is 
on  the  whole  very  satisfactory.  Taxes  are  levied 
on  the  basis  of  net  earnings.  If  there  are  no- 
net.  earnings,  there  is  no  tax.  In  other  words, 

28     Vol.  3  (433) 


434     FINANCING,  CONSTRUCTING,  MAINTAINING. 

if  the  owners  of  a  property  do  not  receive  any- 
thing for  its  use,  they  are  not  asked  to  supple- 
ment their  loss  by  other  losses.  Taxes  upon  real 
or  personal  property  are  unknown.  A  small  tax 
on  the  capital  stock  owned  by  Belgian  citizens  is 
exacted,  but  the  law  does  not  require  holders  to 
register  their  shares.  The  tax,  therefore,  can 
be,  and  is,  evaded.  Indeed,  the  evasion  is  de- 
signed, the  purpose  being  to  make  net  income 
the  basis. 

In  Great  Britain  the  general  tax  on  railway 
property  is  based,  like  that  in  Belgium,  on  net 
earnings.  Following  the  custom,  however,  en- 
forced prior  to  the  introduction  of  railroads,  a 
tax  of  five  per  cent,  is  levied  on  gross  passenger 
earnings.  Fares  that  do  not  exceed  a  penny  per 
mile  (instituted  to  benefit  the  poorer  classes)  are, 
however,  exempt.  No  direct  tax  is  levied  on 
freight,  express,  mail  or  miscellaneous  earnings, 
as  such.  Taxes  are  based  on  net  annual  profits. 
Thus,  except  in  the  case  of  the  tax  on  a  portion 
of  the  passenger  traffic,  nothing  is  exacted  in  the 
event  there  is  no  surplus  over  and  above  operat- 
ing expenses.  It  must  be  remembered,  however, 
in  connection  with  the  English  method  of  taxa- 
tion, that  the  practice  of  mortgaging  railroads  is 
not  practiced  there  to  the  extent  it  is  in  the 
United  States.  Money  raised  to  build  railroads 
is  represented  by  capital  stock,  and  the  govern- 
ment tax  takes  precedence  of  any  dividend  on 
.such  stock.  It  is,  in  a  general  way,  the  same  as 
levying  a  tax  in  the  United  States  on  earnings 


BASIS  OF  RAILWAY  TAXATION.  4^5 

before  deducting  the  amount  paid  as  interest  on 
bonds  or  for  dividends.  A  committee  of  our 
state  commissioners,  appointed  several  years  ago 
to  examine  the  question  of  taxation,  commended 
the  English  system,  but,  in  the  recommendations 
they  make  I  am  unable  to  find  that  they  con- 
form to  its  provisions. 

During  the  civil  war  in  America  a  tax  was 
levied  on  gross  earnings,  but  it  was  added  to  the 
tariff  rate  by  the  carrier,  so  that  he  acted  simply 
as  the  agent  of  the  government  in  collecting  the 
tax  from  the  people.  A  tax  of  three  per  cent, 
(afterward  increased  to  five)  was  levied  on  mort- 
gage interest  and  dividends.  It  was  deductible 
by  the  payer.*  A  stamp  tax  on  the  bank  checks 
of  railroads  was  also  levied.  All  these  taxes 
were  considered  to  be  of  an  extraordinary  nature 
consequent  upon  the  expenses  of  the  war,  and 
were,  one  and  all,  permitted  to  lapse  with  the 
occasion  that  gave  them  birth. 

Taxes  levied  by  different  states  of  the  Union 
are  not  the  same.  Frequently,  different  methods 
are  pursued  by  the  same  state.  The  basis  will 
be  different,  and  the  method  of  assessment  and 
levy  different.  Each  pursues  a  system,  partly  its 
own,  partly  borrowed.  The  annoyance  these  dif- 
erences  occasion  are  aggravated  by  the  fact  that 
the  lines  that  separate  the  states  have  no  com- 

*  The  tax  was  usually  deducted  by  the  companies  from  the 
amount  holders  would  otherwise  have  been  entitled  to  receive. 
In  some  cases,  however,  the  amount  of  the  tax  was  paid  by  the 

company. 


436     FINANCING,  CONSTRUCTING,  MAINTAINING. 

mercial  significance.  Moreover,  the  differences 
are  oftentimes  discriminative  in  their  nature  to 
the  extent  of  two  or  three  per  cent,  of  gross  earn- 
ings.* This  is  a  very  serious  matter  in  the  case 
of  competitive  companies.  To  those  familiar  with 
the  subject  it  requires  no  difficult  stretch  of  the 
imagination  to  picture,  under  such  a  state  of  af- 
fairs, a  line  so  taxed  as  to  afford  another  com- 
pany, not  so  heavily  handicapped,  a  margin  on  its 
business  equivalent  to  a  fair  profit  on  its  invest- 
ment, or  sufficient,  if  divided  among  its  patrons, 
to  afford  inducements  to  shippers  that  the  first 
named  company  could  not  meet  without  putting 
an  undue  strain  upon  its  resources.  This  is  dis- 
crimination in  its  most  objectionable  form. 
When  a  state  discriminates,  as  it  does  some- 
times, between  railways  within  its  own -borders, 
the  same  results  are  produced,  the  difference  in 
the  tax  affording  the  favored  line  a  margin  it 
may  use  to  ruin  its  adversary. 

A  description  of  the  different  methods  of  taxa- 
tion in  the  United  States  would  fill  a  volume. 
For  purposes  of  illustration  a  few  representative 
states  may  be  given.  In  Wisconsin,  taxes  are 
based  on  gross  earnings.  The  tax  is  levied  by  the 
state  and  is  payable  yearly  in  two  equal  install- 
ments, six  months  apart,  in  the  year  following 
that  for  which  the  tax  is  levied.  Towns  and 

*  Thus,  in  Michigan,  in  1897,  the  tax  was  two  and  one-half 
per  cent,  on  roads  earning  less  than  $2,000  per  mile,  with  an 
increased  percentage  on  earnings  in  excess  of  $2,000  per  mile; 
while  in  Wisconsin,  across  the  border,  the  tax  was  four  pel- 
cent,  on  all  roads  earning  over  $3,000  per  mile. 


BASIS  OF  RAILWAY  TAXATION.  437 

cities  are  only  permitted  to  levy  a  tax  for  the 
improvement  of  streets  within  their  borders  oc- 
cupied by  railroads.  The  Wisconsin  tax  is  based 
upon  the  annual  gross  earnings  per  mile  of  road. 
When  the  earnings  exceed,  we  will  say,  three 
thousand  dollars  per  mile,  a  tax  of  four  per  cent, 
of  the  gross  earnings  is  levied;  if  earnings  are 
over  one  thousand  five  hundred  dollars  per  mile 
and  under  three  thousand  dollars  per  mile,  the 
tax  is  two  per  cent,  of  gross  earnings;  if  gross 
earnings  are  under  one  thousand  five  hundred  dol- 
lars per  mile,  the  tax  is  five  dollars  per  mile  of 
road.* 

The  advantage  afforded  the  second  and  third 
class  roads,  while  it  may  be  proper  in  the  main, 
is  capable  of  being  used  to  the  serious  detriment 
of  other  lines.  It  is  not  difficult  to  picture  a  road 
of  the  second  or  third  class  that  is  earning  more 
on  its  capital  than  those  having  a  higher  revenue 
per  mile.  Of  course,  the  presumption  is  that  the 
lower  grade  roads  are  only  able  to  pay  a  small 
tax,  but  this  presumption  is  not  tenable  in  every 
case,  and  when  not  true  to  the  extent  of  the  favor 
extended,  the  discrimination  may  be  used  to 

*  According  to  this,  the  tax  on  a  mile  of  road  earning  $5,000 
is  $200;  on  a  mile  of  road  earning  $1,500  it  is  $5;  and  on  a  mile 
of  road  earning  $500  it  is  also  $5.  The  decrease  of  percentage  in 
favor  of  the  road  earning  $1,500  per  mile  as  compared  with  a 
road  earning  $5,000  per  mile  is  3§  or  91  ffc  per  cent,  of  the  tax 
levied  on  the  latter.  On  the  other  hand,  the  road  earning 
$1,500  per  mile  has  an  advantage  over  the  road  earning  $500  per 
mile  of  two-thirds  of  one  per  cent.,  the  tax  being  the  same  on 
both  roads.  On  a  road  earning  less  than  $500  per  mile  the  dis- 
crepancy would  be  relatively  greater. 


438     FINANCING,  CONSTRUCTING,  MAINTAINING. 

reduce  rates  to  the  serious  detriment  of  roads  of  a 
higher  class.  It  is  apparent  that  a  road  that  pays 
only  five  dollars  per  mile  annual  tax  is  in  a  con- 
dition to  do  business  on  more  favorable  terms 
than  one  paying  two  hundred  dollars  or  more, 
and  may  use  the  advantage  thus  afforded  by  the 
state  to  undermine  other  properties. 

The  Michigan  tax,  based  on  the  law  of  1897,  is 
two  and  one-half  per  cent,  on  gross  earnings  up 
to  two  thousand  dollars  per  mile;  three  and  one 
fourth  per  cent,  on  the  second  two  thousand  dol- 
lars of  earnings  per  mile;  four  per  cent,  on  the 
next  two  thousand  dollars;  four  and  one-half 
per  cent,  on  the  fourth  two  thousand  dollars, 
and  five  per  cent,  on  all  earnings  in  excess 
of  eight  thousand  dollars  per  mile.  Taxes 
are  levied  for  the  calendar  year  and  are 
payable  before  July  1st  of  the  succeeding  year. 
Michigan  also  levies  a  tax  of  two  and  one-half 
per  cent,  on  such  receipts  of  corporations  (not 
operating  a  railroad  in  Michigan  and  paying  the 
specific  tax  above  mentioned)  as  may  be  received 
by  such  corporations  from  passengers  carried  in 
said  state  in  palace  or  sleeping  cars,  or  cars  for 
which  an  extra  price  is  paid;  also  on  gross 
receipts  derived  from  the  leasing  or  hiring  of  cars 
by  fast  freight  and  other  lines.  Railroads  incor- 
porated before  1850  are  subject  to  an  annual  tax 
of  three-fourths  of  one  per  cent,  on  their  capital 
stock  and  loans  used  in  construction.  Lands 
owned  by  a  company  in  Michigan,  but  not 
required  in  connection  with  the  operation  and 


BASIS  OF  RAILWAY  TAXATION.  439 

maintenance  of  its  road,  are  treated  in  all  respects 
as  if  owned  by  private  individuals. 

In  Minnesota,  taxes  are  based  on  gross  earnings, 
but  practices  are  not  uniform.  Railroad  com- 
panies organized  under  special  charters  may  pay, 
in  lieu  of  all  other  taxes,  one  per  cent,  of  their 
gross  earnings  for  the  first  three  years,  two  per 
cent,  for  the  next  seven  years  and  three  per  cent, 
thereafter,  or  they  may  accept  the  provisions  of 
the  general  law  applicable  to  all  property. 

Iowa  fixes  the  valuation  of  railroad  property 
by  a  state  board,  consisting  of  the  governor, 
secretary  of  state,  auditor  and  treasurer.  The 
assessment  is  also  made  by  this  board.  The  tax 
is  fixed  arbitrarily  at  a  certain  amount  per  mile  of 
road.  The  amount  is  apportioned  by  the  board 
to  the  various  taxing  districts  through  which  the 
line  runs,  upon  the  basis  of  the  relation  that  the 
mileage  of  the  road  in  such  districts  bears  to  the 
total  mileage.  Under  this  method  the  real  or 
relative  value  of  the  property  in  the  various 
taxing  districts,  it  will  be  seen,  does  not  affect  the 
amount  allowed  them,  the  basis  being  the  num- 
ber of  miles  of  main  track.  The  tax  thus 
assessed  is  paid  to  the  local  authorities  along  the 
line  and  includes  real  and  personal  property  of 
every  description.  It  does  not,  however,  prevent 
taxation  for  special  improvements  by  cities  and 
towns.* 

*  In  Iowa,  the  holder  of  the  securities  of  a  railroad  company 
located  within  the  state  is  taxed  on  such  securities  the  same  as 
on  other  personal  property,  although  the  railroad  has  already 
been  taxed  on  its  full  value. 


440     FINANCING,  CONSTRUCTING,  MAINTAINING. 

Illinois  has  a  more  complicated  system  of  tax- 
ation than  any  noticed.  Taxes  are  based  on  the 
value  of  the  property.  The  assessment  is  made 
partly  by  a  state  board  of  equalization  and  partly 
by  local  authorities.  Taxes  are  paid  to  the 
treasurers  of  the  various  counties  through  which 
the  road  runs.  The  value  of  the  property  in  the 
various  taxing  districts  (coming  within  the  cog- 
nizance of  the  state  board)  is  certified  to  such 
board  by  the  local  authorities.  The  state  board 
then  fixes  the  value  upon  which  the  assessment 
shall  be  made.  A  railroad  in  Illinois  is  under- 
stood to  include  the  right  of  way,  tracks  and 
other  improvements  thereon.  The  value  of  the 
rolling  stock  is  determined  by  the  state  board 
and  apportioned  to  the  local  taxing  districts  on 
the  basis  that  the  mileage  in  such  districts  bears 
to  the  total  mileage.  Real  and  personal  property 
not  included  in  the  assessment  referred  to,  such  as 
wharves,  shop  grounds,  supply  depots,  storage 
houses  and  the  contents  thereof,  including  furni- 
ture, tools,  machinery  and  fuel,  are  assessed  by 
the  local  authorities.  Moreover,  if  the  funded 
debt  of  a  company  and  the  market  value  of  its 
shares  exceed  the  value  of  the  real  and  personal 
property  ascertained  in  the  manner  described, 
the  company  may  be  taxed  for  such  excess. 

Such  are  some  of  the  methods  of  taxation  pur- 
sued in  America.  I  refer  to  the  subject  again 
further  on.  There  is  nothing  fixed  about  these 
methods  and  they  may  be  changed  at  any  meeting 
of  a  state  legislature.  The  manner  in  which  the 


BASIS  OF  RAILWA  Y  TAXATION.  441 

states  apply  the  tax  is  never,  so  far  as  I  know,  the 
same  in  any  two  cases.  Systems  differ  in  detail 
and  oftentimes  in  principle.  None  of  them  is 
satisfactory,  and  it  is  probable  that  a  perfectly  sat- 
isfactory system  cannot  be  attained.  To  be  just  it 
must  take  cognizance  of  each  company  and  must 
be  equitable  in  its  application.  This  is  hardly  to 
be  expected — at  least  for  the  present.  We  should 
not,  however,  the  less  strive  for  its  attainment. 
In  this  connection  it  is  noticeable  that  the  more 
enlightened  of  the  officials  of  our  state  govern- 
ments appreciate  the  serious  objections  that  exist 
to  the  systems  of  taxation  they  enforce.  This 
feeling  found  expression  at  one  period  in  the 
appointment  of  a  board  of  state  railroad  commis- 
sioners to  examine  into  the  subject.  It  finally 
recommended  a  tax  on  gross  earnings,  supple- 
mented by  a  tax  on  realty.  "  The  conclusion  at 
which  your  committee  arrived  was  that  all  the 
requisites  of  a  sound  system  were  found  in  taxes 
on  real  property  and  on  gross  receipts,  and  in  no 
others — in  fact,  that  when  these  were  properly 
imposed,  no  other  taxes  would  or  could  be  neces- 
sary, as  nothing  would  escape  untaxed.  Under 
this  system  the  real  estate  of  the  railroad  corpo- 
rations, held  for  corporate  use  outside  of  their 
right  of  way,  would  be  locally  assessed,  exactly  in 
the  same  way  as  the  real  estate  of  private  persons 
or  of  other  corporations  adjoining  it  was  assessed. 
There  would  be  no  distinction  made  in  regard  to 
it.  It  is  the  ordinary  tax  on  real  property.  Be- 
yond that  a  certain  fixed  percentage,  established 


442     FINANCING,  CONSTRUCTING,  MAINTAINING. 

by  law  and  of  general  application,  should  be  as- 
sessed on  the  entire  gross  earnings  of  the  corpo- 
rations, and  this  should  be  in  lieu  of  all  forms  of 
taxation  on  what  is  known  as  personal  property. 
Under  this  system  the  rolling  stock  of  the  corpo- 
ration would  not  be  assessable;  nor  its  securities, 
whether  stock  or  bonds,  either  indirectly  through 
the  corporation  or  directly  in  the  hands  of  those 
owning  them.  The  entire  burden,  be  the  same 
more  or  less,  would  be  imposed  in  one  lump  on 
the  corporation  and  levied  directly.  It  does  not 
need  to  be  pointed  out  that  this  system  is  per- 
fectly simple;  that  under  it  taxation  is  fixed  by  a 
general  law  and  not  by  local  valuations;  that  it 
is  thoroughly  proportionate,  inasmuch  as  the 
amount  levied  depends  on  the  volume  of  gross 
receipts;  finally,  it  can  be  ascertained  by  anyone, 
and  can  by  no  possibility  be  evaded." 

Let  us  examine  the  method  they  suggest,  and, 
as  they  have  themselves  pointed  out  its  merits, 
we  may  confine  our  examination  to  its  objection- 
able features.  And  first  it  is  apparent  that  the 
property,  outside  the  right  of  way,  would  be 
doubly  taxed,  for  the  reason  that  earnings  are 
based  on  total  cost.  A  tax  levied  on  earnings 
covers  every  species  of  property  so  far  as  such 
property  is  necessary  or  contributes  in  any  way 
to  earnings.  The  objection  to  this  basis  is  it  sup- 
poses that  property  outside  the  right  of  way  does 
not  contribute  to  the  earnings  power  of  a  road. 
Might  we  not  with  equal  reason  say  that  the 
brain  is  not  a  part  of  man,  that  he  is  made  up 


BASIS  OF  RAILWAY  TAXATION.  443 

wholly  of  legs  and  arms?  A  system,  morever, 
which  permits  a  company  to  be  taxed  by  the 
state  authorities  and  also  by  the  various  districts 
through  which  it  runs,  independently  of  each 
other,  invites  in  its  operation  measures  of  the 
most  oppressive  character. 

The  rate  of  taxation  proposed  is  also  variable. 
If  earnings  exceed  a  certain  amount  per  mile, 
then  a  particular  rate  is  to  be  enforced.  If  the 
earnings  do  not  exceed  this  amount,  then  a  differ- 
ent rate  is  charged.  The  distinctions  contem- 
plated are  objectionable  for  the  reasons  I  have 
already  pointed  out. 

The  operation  of  a  tax  based  on  gross  receipts 
without  reference  to  the  cost  of  a  property  or  the 
expense  of  operating  is  objectionable,  as  its  effect 
is  to  confiscate  net  revenue  in  many  cases.  A 
tax  on  gross  earnings  does  not  recognize  the 
equities  of  business — the  difference  between  a 
profitable  and  an  unprofitable  business.  If  the 
capital  invested  in  different  roads  or  different 
parts  of  a  road  were  the  same,  the  cost  of  main- 
tenance the  same,  the  amount  of  business  the 
same,  the  expense  of  operating  the  same,  and  if 
there  were  a  sufficient  margin  of  profit  after 
deducting  expenses  of  maintenance  and  operat- 
ing, a  tax  on  gross  earnings  would  not  be  objec- 
tionable; but,  unfortunately,  these  conditions  do 
not  exist  in  a  single  instance.  Cost  is  never  the 
same  for  different  roads,  and  for  the  same  road 
one  portion  will  cost  more  than  another.  The 
expensive  part,  however,  is  as  necessary  to  the 


444     FINANCING,  CONSTRUCTING,  MAINTAINING. 

system  as  the  other.  Thus,  while  gross  earnings 
amounting  to  one  thousand  five  hundred  dol- 
lars per  mile  may  afford  a  fair  margin  of  profit  on 
a  cheap  line,  earnings  amounting  to  ten  thousand 
dollars  per  mile  might  be  insufficient  on  a  more 
costly  line.  A  tax  on  gross  earnings  does  not 
recognize  the  distinction  between  widely  differ- 
ent classes  of  property,  and  in  so  far  as  it  fails  to 
do  this  is  objectionable. 

Discrimination  between  railroads  through  the 
levying  of  a  different  tax  on  their  gross  earnings 
is  in  the  nature  of  a  subsidy  granted  to  one  and 
denied  to  another.  This  subsidy  is  allowed  with- 
out reference  to  relative  net  receipts,  and  is, 
therefore,  nothing  more  nor  less  than  a  fund 
which  the  receiving  company  may  retain  or  use 
in  the  procurement  of  business  to  the  serious 
detriment  of  its  rivals.* 

A  tax  based  on  gross  earnings  is  objectionable 
under  the  most  favorable  circumstances.  The 
directness  and  simplicity  of  the  assessment  and 
levy  invite  aggressiveness  and  injustice  upon  the 
part  of  legislators  and  others.  Its  processes  are 
too  easy. 

If  taxation  were  a  blessing  to  be  encouraged, 
then  the  case  would  be  different.  Unfortunately, 
it  is  the  reverse  of  this,  and  one  of  the  chief  con- 
cerns of  men  in  America  is  to  restrict  by  every 
means  the  amount  of  the  annual  tax  levy. 
Under  the  system  of  assessing  gross  earnings 

*  In  Wisconsin  this  rebate,  as  I  have  shown,  exceeds  three 
-per  cent,  in  some  cases. 


BA  SIS  OF  RA IL  WA  Y  TAXA  TION.  445 

legislators,  ambitious  of  cheap  renown,  see  in  the 
addition  of  a  slight  per  cent,  to  the  tax  on  rail- 
roads an  easy  way  to  relieve  their  constituents 
without  loss  of  local  popularity,  and  thus  an 
injustice  brought  about  by  the  weaknesses  of  a 
legislator  is  forever  fastened  upon  the  carrying 
interest.  Or,  in  the  absence  of  individual  action, 
the  burdens  of  the  community  are  placed  upon 
the  railroads  simply  because  they  represent  a 
small  and  unpopular  minority,  the  process  for 
fixing  the  burden  upon  them  being  simple  and 
certain.*  A  tax  on  gross  earnings  is  objection- 
able on  other  accounts.  If  the  business  of  a  com- 
pany were  unprofitable,  the  greater  the  amount 
of  its  business  the  greater  the  burden  it  would 
have  to  bear.  We  can  easily  conceive  of  a  case 
where  a  company  might  have  large  gross  earn- 
ings but  no  net  revenue  at  all.  The  burden  of  a 
tax  under  such  circumstances  would  greatly  ac- 
celerate its  road  to  ruin.  When  the  business  of 
a  railroad  is  barely  profitable,  a  tax  based  on 
gross  earnings  is  in  the  nature  of  a  prohibitory 
enactment.  Such  a  tax  takes  no  account  of  the 
cost  of  properties  nor  their  real  earnings.  There 

*  "  In  certain  states  railroads  are  apparently  looked  upon  as  a 
species  of  windfall  from  which  everything  that  can  be  exacted 
in  the  way  of  taxation  is  so  much  pure  gain."— Report  of  Com- 
mittee  of  State  Railroad  Commissioners  on  Taxation;  Proceedings 
of  the  National  Convention  of  Railroad  Commissioners.  This 
disposition  would  only  be  aggravated,  we  may  believe,  by 
simplifying  the  processes  by  which  the  railroad  companies 
may  be  harassed.  Our  efforts,  therefore,  should  be  directed  to 
rendering  it  difficult,  if  not  impossible,  for  the  ignorant  and 
vicious  to  make  a  football  of  railway  interests. 


446     FINANCING,  CONSTRUCTING,  MAINTAINING. 

are  other  objectionable  features  I  cannot  stop 
to  notice.  Wherever  taxes  are  based  on  gross 
earnings,  the  amount  of  the  tax  should  be  added 
specifically  to  the  tariff  rate  in  billing  the  freight 
or  ticketing  the  passenger.  In  no  other  way  can 
the  baneful  effects  likely  to  follow  such  a  system 
be  obviated. 

Taxes  based  on  capital  stock  or  bonded  debt 
are  also  objectionable.  While  apparently  fair  in 
many  ways,  they  are  like  taxes  on  gross  earnings, 
fallacious  and  unjust.  However,  as  such  method 
has  few  advocates,  I  do  not  esteem  it  necessary 
to  enter  into  a  discussion  of  the  subject  here. 

Taxation  based  on  real  and  personal  property, 
the  assessment  being  made  by  persons  on  the 
ground  and  familiar  with  local  values,  is  the  least 
objectionable  of  the  methods  that  have  been  tried 
in  America.  Such  a  tax  does  not  invite  class 
legislation  to  the  extent  that  a  tax  on  gross 
earnings  does.  Valuations  are  measurably  real, 
because  based  on  the  condition  of  the  property 
in  the  various  taxing  districts.  The  tax  on  gross 
earnings  is  based,  in  many  instances,  upon  merely 
nominal  values.  The  realty  tax  is  at  least  bona 
fide,  and  permits,  moreover,  the  exercise  of  judg- 
ment and  an  equitable  conscience.  The  objec- 
tions to  it  are  that  assessments  are  not  always 
made  by  competent  persons.  The  justness  of 
such  an  objection  cannot  be  disputed,  but  it  ap- 
plies to  our  whole  system  of  taxation. 

An  objection  to  the  realty  tax  is  that  it  fails 
to  take  cognizance  of  the  profitableness  of  a 


BASIS  OF  RAILWAY  TAXATION.  44? 

company's  property,  the  tax  oftentimes  being  the 
same  whether  the  enterprise  is  productive  or  not. 
This  objection  is  fatal.  So  long  as  the  state 
claims  the  right  to  fix  the  rates  railroads  shall 
charge,  or  otherwise  restricts  their  operation,  it  is 
bound  to  ascertain  the  effect  of  its  action  before 
determining  the  responsibility  of  the  carrier  as  a 
tax  payer.  If  the  state  exercises  the  right  to  cir- 
cumscribe the  earnings  of  a  property,  it  must  cir- 
cumscribe in  like  manner  the  taxes  it  imposes. 
The  duties  of  sovereignty  are  not  simply  coercive; 
they  are  protective  as  well.  When  a  government 
by  its  action  reduces  the  income  of  a  property, 
the  amount  of  that  reduction  is  in  the  nature 
of  a  tax,  and  the  effect  must  be  considered  be- 
fore proceeding  to  impose  an  additional  burden. 
The  essence  of  railway  property,  as  of  all  other 
commercial  enterprises,  is  its  net  earnings.  For 
this  railroads  are  built,  and  for  this  they  are  oper- 
ated. They  are,  however,  the  slaves  of  the  state 
and  require,  therefore,  exceptional  consideration 
at  its  hands.  If  the  state  restricts  their  earnings, 
it  must  not  impose  burdens  inconsistent  there- 
with. This  does  not  need  argument.  And  herein 
lies  the  objection  to  any  method  of  taxation  of 
railway  property  not  based  on  net  earnings.  If  a 
state  restricts  railways  in  their  operations,  the 
amount  a  property  yields  its  owners  must  be  the 
gauge  of  the  latter's  responsibility.  The  systems 
of  taxation  that  our  states  enforce  do  not,  unfor- 
tunately, make  this  just  distinction.  Whatever 
surplus  remains,  if  any,  after  paying  expenses,  is 


448     FINANCING,  CONSTRUCTING,  MAINTAINING. 

properly  subject  to  taxation.  In  all  matters  re- 
lating to  the  worth  of  railroads,  estimates  are 
predicated  upon  net  earnings,  for  the  reason  that 
railroad  property,  outside  its  uses  for  railroad 
purposes,  has  no  value  to  its  owners.  If  a  rail- 
way earns  nothing,  then  the  public  which  has 
enjoyed  its  benefits  without  rewarding  its  own- 
ers should  not  make  further  claim  upon  it;*  if 
net  earnings  have  been  meager,  the  tax  gatherers' 
portion  should  also  be  meager;  if  net  receipts 
have  been  fair,  then  the  tax  should  correspond; 
if  the  earnings  have  been  bountiful,  then  the 
tax  should  be  bountiful.  Herein  I  conceive  to 
lie  the  true  principles  of  taxing  railroad  property. 
Under  so  beneficent  a  system  the  community  of 
interest,  as  between  the  state  and  its  servant, 
would  be  complete.  Under  it  the  state  would  be 
concerned  in  fostering  railroad  interests  rather 
than  in  harassing  them.  This  direct  and  per- 
sonal concern  upon  the  part  of  the  state  our 
system  lacks.  It  levies  taxes  without  reference 
to  the  ability  of  a  company  to  pay,  after  having 
fixed,  without  reference  to  the  subject  of  taxation, 

*  It  may  be  said,  perhaps,  that  this  rule,  if  applied  to  rail- 
roads, should  also  be  applied  to  individual  cases.  Under  ex- 
actly similar  circumstances,  yes;  not  otherwise.  Many  of  the 
industries  of  our  citizens  are  especially  protected  by  a  tariff 
designed  largely  for  that  purpose,  and  in  those  cases  where 
protection  is  not  extended  the  individual  is  left  free  to  derive 
from  his  business,  trade  or  calling  such  profit  as  his  experience, 
foresight  and  capital  render  possible.  The  railroad  companies, 
on  the  other  hand,  as  already  stated,  are  hampered  by  special 
laws,  and  in  many  cases  their  income  expressly  limited  by  leg- 
islative enactment. 


BA SIS  OF  RAIL  WA  Y  TAXA  T10N.  449 

the  rate  of  compensation  to  be  charged  for  doing 
business.  During  the  time  railways  are  being 
constructed,  and  before  they  are  opened  for  busi- 
ness, the  application  of  the  method  adopted  for 
taxing  private  parties  is  right  and  proper.  What- 
ever the  method  of  taxing  railroads  may  be, 
whether  based  on  property,  shares,  bonds,  gross  re- 
ceipts or  net  earnings,  the  tax,  when  levied,  should 
be  final  and  in  lieu  of  all  other  assessments. 

Very  little  has  been  written  in  regard  to 
methods  of  railway  taxation.  Sources  of  infor- 
mation in  this  direction  are,  consequently, 
meager.  Mr.  C.  C.  Harvey,  who  has  given  the 
subject  much  thought,  in  an  article  on  railway 
taxation  has  this  to  say:  "In  Ohio  the  county 
auditors  constitute  a  board  of  appraisers  and 
assessors  and  report  annually  to  the  Auditor  of 
State,  for  the  use  of  the  State  Board  of  Equaliza- 
tion of  Railroad  Property,  the  amount  assessed 
against  each  railroad,  specifying  the  total  sum 
and  the  amount  distributed  to  each  county,  city, 
incorporated  town,  township  and  village.  In 
addition  to  the  tax  paid  thereon,  there  is  a  privi- 
lege tax  of  one  dollar  per  mile  charged  by  the 
state  for  each  mile  of  main  track  and  siding.  In 
Kentucky  the  railroad  commissioners  (three  in 
number)  constitute  the  board  of  assessors  and 
equalization,  the  valuation  found  by  them  being 
used  for  state  purposes  and  also  for  each  city, 
town,  county  and  tax  district.  In  Tennessee 
three  railroad  assessors  appointed  by  the  gov- 
ernor assess  the  distributable  property,  i.  e.,  the 

29    Vol.  3 


450     FINANCING,  CONSTRUCTING,  MAINTAINING. 

roadbed,  rolling  stock  and  personal  property  hav- 
ing no  actual  situs,  every  two  years  for  state  and 
municipal  taxation,  deducting  from  the  valuation 
one  thousand  dollars  before  apportioning  the 
amount  per  mile  to  each  county,  town  and  dis- 
trict. All  other  property,  real,  personal  and 
mixed,  including  depot  buildings,  yards,  etc.,  is 
assessed  by  county  assessors  and  by  the  assessors 
of  municipal  corporations,  who,  however,  submit 
the  returns  to  the  state  railroad  assessors.  The 
governor,  secretary  of  state  and  treasurer  of  state 
constitute  a  board  of  examiners  upon  the  valua- 
tions found  upon  the  distributable  property,  and 
their  action  thereon  is  final.  It  is  provided  that 
the  assessors,  in  making  their  valuations  of  dis- 
tributable property,  shall  have  in  view  and  look 
to  the  capital  stock,  property  and  franchises  of 
each  company,  as  well  as  the  gross  receipts,  the 
individual  stock  of  each  shareholder,  and  the 
schedules  filed.  The  local  property  (depots,  shops, 
yards,  material,  etc.,)  is  assessed  like  other  taxa- 
ble property  by  county  and  municipal  assessors 
upon  the  basis  of  the  marketable  value  of  the 
property.  The  assessment  can  be  reviewed  at  the 
instance  of  either  party  before  an  equalization 
board  and  the  assessments  altered  as  the  facts 
may  warrant.  In  Georgia  the  comptroller  general 
passes  upon  the  returns  made  by  the  railroad 
companies,  and,  if  dissatisfied  with  the  same,  re- 
ports to  the  governor,  who  shall  then  appoint 
three  competent  and  disinterested  persons  to  ex- 
amine and  assess  the  property.  If  the  railroad 


BASIS  OF  RAILWAY  TAXATION.  451 

company  is  dissatisfied,  the  state  permits  the 
question  to  be  decided  by  arbitrators,  one  to  be 
chosen  by  the  state  and  one  by  the  railroad  com- 
pany. The  law  provides  that  the  property  shall 
be  valued,  as  far  as  may  be  practicable,  to  be  taxed 
as  other  property  of  the  people  of  the  state. 
In  Alabama  the  governor,  secretary  of  state, 
treasurer  and  auditor  of  state  constitute  a  board 
of  assessment,  and  the  valuation  found  by 
them  must  be  taken  by  the  county  assessors. 
Real  estate,  fixtures,  etc.,  are,  however,  assessed 
as  other  property  owned  by  private  citizens. 
The  law  provides  that  the  valuation  of  railroad 
property  shall  be  made  upon  the  same  principle 
as  the  valuation  of  other  species  of  property, 
namely,  what  it  would  sell  for  under  the  condi- 
tions under  which  that  character  of  property  is 
most  usually  sold.  In  addition  to  the  ordinary 
tax,  a  privilege  tax  of  one-tenth  of  one  per  cent, 
is  charged  by  the  state.  In  Mississippi,  the  audi- 
tor of  public  accounts,  treasurer  and  secretary  of 
state  form  the  board  of  assessors,  the  valuations 
found  by  them  per  mile  being  valuations  to  be 
used  for  state  and  county  purposes  and  incor- 
porated towns;  but  the  local  property  of  any  rail- 
road in  any  city  or  incorporated  town  may  be 
taxed  to  the  extent  allowed  by  law  upon  a  valua- 
tion made  upon  the  same  basis  as  the  property  of 
individuals.  In  lieu  of  this  plan  as  to  state  and 
county  taxes,  a  privilege  tax  ranging  up  to  one 
hundred  and  twenty-five  dollars  per  mile  of  main 
track  is  fixed,  two-thirds  of  the  amount  being 


452     FINANCING,  CONSTRUCTING,  MAINTAINING. 

placed  by  the  state  to  the  credit  of  the  counties, 
and  in  some  cases  cities  and  towns  are  allowed 
to  impose  a  privilege  tax  equal  to  one-half  that 
levied  by  the  state  in  lieu  of  the  ad  valorem  tax. 
In  Louisiana,  the  police  jury  of  each  parish  is 
required  to  elect  one  of  their  number,  or  some 
other  property  taxpayer  of  the  parish,  to  act  as 
a  board  of  assessors  on  the  assessment  of  rail- 
roads passing  through  the  parish;  the  assessment, 
which  shall  be  uniform,  found  by  them,  is  re- 
ported to  the  assessors  of  the  different  parishes, 
and  is  to  be  final  unless  changed  by  suit  for 
reduction,  said  suit  to  be  filed  and  conducted  in 
the  parish  in  which  the  president  of  the  board 
may  live.  It  will  be  observed  that  in  Mississippi 
the  railways  may  pay  a  privilege  tax  per  mile 
of  main  track  in  lieu  of  the  state  and  county 
taxes.  This  system  of  so-called  "  privilege  "  tax 
is  in  vogue  in  other  states.  Maryland,  Dakota 
and  Vermont  tax  gross  earnings.  The  valuation 
per  mile  of  road  placed  upon  railroad  property  for 
taxation  purposes  differs  very  materially  in  differ- 
ent states;  for  example,  the  assessed  value  per 
mile  of  road  in  Kentucky  and  Tennessee  is  about 
double  the  assessed  value  in  Ohio.  In  like  man- 
ner the  percentage  that  taxes  bear  to  gross 
earnings  varies  very  much  in  different  states 
and  for  different  railways.  As  to  the  basis  upon 
which  railways  should  be  taxed,  there  seems 
to  be  no  good  reason  why  the  rules  governing 
the  assessment  of  other  than  railway  property 
should  not  apply  also  to  railways;  the  valuation 


•  BASIS  OF  RAILWAY  TAXATION.  453 

of  the  distributable  property  per  mile  of  road, 
however,  should  be  uniform  in  each  state, 
as  the  intrinsic  value  of  the  railway  depends 
upon  its  integral  feature,  and  it  is  impos- 
sible to  correctly  assess  the  road  separately  by 
tax  districts;  it  should  be  valued  as  a  whole  and 
not  as  a  collection  of  separate  properties.  The 
claim  that  because  railways  are  so-called  monop- 
olies they  should  be  subjected  to  great  burdens 
is  not  founded  upon  justice.  Railways  are  sub- 
jected to  governmental  regulations  of  no  ordinary 
nature.  Many  states  reduce  railway  rates,  and, 
by  various  regulations,  -by  demands  for  alleged 
improvements  to  rolling  -  stock  and  for  special 
accommodations,  greatly  increase  the  operating 
expenses.  They  reduce  the  resources  of  the  rail- 
way companies,  and  should  not,  consequently, 
burden  them  with  excessive  taxes.  The  question 
is  frequently  asked,  How  is  the  taxable  value  of 
a  railroad  to  be  ascertained?  I  am  of  the  opinion 
that  net  revenue  (the  difference  between  gross 
earnings  and  operating  expenses)  should  be  the 
chief  factor  to  determine  the  value.  Gross  earn- 
ings may  be  large,  but  the  value  of  the  property 
will  mainly  depend  upon  the  net  earnings,  which 
will  be  all  that  can  be  relied  upon  to  compensate 
the  owners  for  the  money  invested.  Capital 
looks  for  a  return  upon  its  outlay  and  will  not, 
under  ordinary  circumstances,  invest  in  property 
that  will  not  pay  a  dividend  upon  the  investment, 
and  however  large  an  amount  a  road  may  have 
cost,  or  however  great  its  earnings,  the  property 


454     FINANCING,  CONSTRUCTING,  MAINTAININf,. 

cannot  be  expected  to  bring  in  the  open  market 
more  than  it  can  reasonably  be  expected  to  pay 
a  dividend  upon.  The  character  also  of  the  road- 
bed and  the  condition  of  the  track  will  be  re- 
flected, in  the  course  of  a  few  years,  in  the  net 
revenue  of  the  company.  Poor  rails  and  un- 
ballasted track  will  entail  heavy  working  ex- 
penses for  maintenance  of  way  and  for  repairs  to 
rolling  stock  and  probably  for  wrecks  that  might 
otherwise  be  avoided.  Except  as  a  going  con- 
cern a  railroad  is  worth  very  little;  the  cost  of 
grading,  bridging,  tunneling,  cross- ties,  ballast- 
ing, etc.,  would  be  absolutely  lost,  and  but  a  small 
amount  obtained  from  the  right  of  way,  station 
grounds,  buildings,  shops,  machinery,  rails  and 
the  other  essentials  of  a  railroad  if  the  road 
should  cease  to  be  operated.  It  is  worthy  of 
remark  that  in  England,  the  Southwark  &  Dept- 
ford  Tramway  Company  successfully  appealed 
against  an  assessment  for  taxation,  and,  by  prov- 
ing that  from  various  circumstances  and  the  low 
fares  at  which  they  were  obliged  to  run,  their 
expenses  were  greater  than  their  receipts,  and 
that  if  the  tramways  were  in  the  market  to  let, 
no  tenant  could  be  found  to  rent,  the  company 
practically  obtained  exemption  from  assessment. 
There  are  so  many  circumstances  affecting  the 
net  earnings  of  a  railroad — the  actual  com- 
petition of  to-day,  the  possible  competition  of 
to-morrow,  reductions  of  rates,  poor  harvests, 
dullness  of  business,  labor  strikes,  increased 
demands  necessitating  heavy  operating  expenses 


BA  SIS  OF  RA IL  WA  Y  TAX  A  TION.  455 

or  perhaps  capital  outlay,  accidents  that  the 
most  careful  management  cannot  guard  against 
— that  a  liberal  rate  should  be  allowed  b$ 
which  to  estimate  the  par  value  of  the  property. 
Probably  ten  per  cent,  would  be  necessary  as  a 
basis  for  par  value,  to  place  railroads  upon  an 
equality  with  other  property.  Upon  this  basis  a 
road  earning  one  thousand  dollars  per  mile  net 
would  be  valued  at  ten  thousand  dollars  per 
mile,  and  a  road  earning  three  thousand  dollars 
per  mile  net  would  be  valued  at  thirty  thousand 
dollars  per  mile,  this  valuation  to  be  subject  to 
such  reductions  as  might  be  customary  on  other 
classes  of  property  in  the  state.  The  annual  ac- 
counts required  by  the  state  are  so  complete  that 
an  accurate  knowledge  of  the  results  of  the 
yearly  operations  can  be  obtained  therefrom. 
Assessors  have  more  reliable  means  at  their  dis- 
posal by  which  to  make  a  fair  valuation  of  rail- 
way property  than  for  ^  any  other  species  of 
property;  they  have  the  sworn  statements  of  the 
railroad  companies  and  can  refer  to  the  annual 
reports  made  to  the  stockholders,  to  the  annual 
reports  made  to  the  state,  and  in  many  cases  to 
reports  made  to  commissioners.  Unfortunately, 
there  is  an  increasing  tendency  to  heavily  tax 
corporations.  The  taxes  paid  by  them  are  gen- 
erally of  large  amounts  and  are  easily  collected 
with  small  cost,  whereas  the  sums  paid  by  indi- 
viduals are  comparatively  small.  The  heavier 
the  taxes  on  corporations,  the  lighter  the  burden 
on  individuals,  and  the  individuals  are  voters.  A 


456     FINANCING,  CONSTRUCTING,  MAINTAINING. 

serious  objection  to  taxing  railroads  by  special 
laws,  by  a  gross  revenue  tax  or  by  a  privilege  tax 
per  mile  of  road,  is  that  the  tendency  induces 
legislators,  perhaps  unconsciously,  to  unduly  in- 
crease the  burdens  on  railroads;  and,  conse-  « 
quently,  to  decrease  the  burdens  on  individuals; 
in  other  words,  to  discriminate  against  one  class 
of  property.  As  an  instance,  the  Mississippi  code 
of  1880  fixed  the  privilege  tax  per  mile  on  certain 
railroads  at  eighty  dollars  per  mile,  seventy  dollars 
per  mile  and  sixty  dollars  per  mile,  respectively. 
In  1884  these  taxes  were  increased,  the  eighty  dol- 
lars and  seventy  dollars  per  mile  tax  to  one  hun- 
dred dollars  per  mile,  and  the  sixty  dollars  per 
mile  tax  to  eighty  dollars  per  mile.  Two  years 
later  (in  1886)  there  was  a  further  addition,  the 
taxes  on  all  railroads  being  increased  twenty-five 
per  cent,  over  the  amount  fixed  in  1884.  In  1888 
another  increase  wras  made,  by  amendment,  to 
some  local  statute,  which,  however,  was  not 
signed  by  the  proper  authorities  and  did  not, 
therefore,  become  a  law.  The  increase  actually 
made,  however,  between  the  years  1880  and 
1886,  amounted  to  over  fifty-six  per  cent,  on  the 
eighty  dollars  tax,  to  over  seventy-eight  per  cent, 
on  the  seventy  dollars  tax,  and  to  nearly  sixty- 
seven  per  cent,  on  the  sixty  dollars  tax,  while 
reference  to  Poor's  manual  shows  that  very  lit- 
tle improvement,  if  any,  took  place  in  the  net 
or  gross  earnings  of  the  companies  in  question 
during  that  time.  For  other  classes  of  property 
the  increase  in  taxation  was  comparatively 


ISA  SIS  OF  RAILWAY  TAXATION.  457 

light.  The  objections  to  a  tax  on  gross  earn- 
ings, beside  that  of  principle,  are  that  it  oper- 
ates against  those  roads  which,  for  various 
causes  beyond  control,  are  worked  at  a  higher 
cost  per  cent,  of  gross  earnings  than  other  roads 
(possibly  their  competitors)  within  the  state; 
and  also  that  it  is  unfair  to  those  companies  that 
do  business  at  low  rates,  as  the  relative  profit 
on  low  rates  is  less  than  on  high  rates."  It  is 
noticeable  that  where  the  tax  is  fixed  by  the 
state,  and  is  based  on  mileage  of  road  or  gross 
earnings,  the  tendency  is  to  keep  increasing  it 
without  much,  if  any,  reference  to  the  income 
owners  derive  from  their  property.  Such  action 
cannot  be  too  severely  condemned  by  the  public. 
It  is  nothing  more  nor  less  than  confiscation. 


CHAPTER   XV. 

MAINTENANCE — THINGS  THAT    ENTER   INTO    THE 
MAINTENANCE  OF    A  RAILROAD. 

Railway  maintenance  presents  itself  under 
various  aspects,  such  as  the  preservation  of  the 
material  property,  the  maintenance  of  the  rights 
of  railways  under  their  charters  or  acts  of  incor- 
poration, the  building  up  of  the  esprit  de  corps  of 
the  forces  (a  matter  of  vital  importance  to  the 
public,  the  owner  and  the  employe),  the  educa- 
tion of  officers  and  employes  in  the  things  that 
pertain  to  railway  operations,  and  so  on. 

All  these  phases  of  the  subject  receive  more  or 
less  attention  throughout  these  volumes.  They 
are  a  part  of  the  science  of  railways  and  not  the 
less  important  because  not  forming  a  part  of  the 
daily  thoughts  of  officers  and  employes. 

The  particular  phase  of  railway  maintenance 
which  I  wish  to  consider  in  this  chapter  relates 
mainly  to  the  effect  of  certain  influences. 

I  have  mentioned  in  another  place  the  possi- 
bility that  through  the  unwise  exactions  of  labor 
it  may  some  time  be  found  necessary  to  close  up 
a  railway,  or  group  of  railways,  for  a  longer  or 
shorter  period,  because  of  the  impossibility  of 
procuring  men  to  operate  them.  Such  a  contin- 
gency does  not  seem  likely,  nor  did  it  seem  likely 

(458) 


THINGS  AFFECTING  MAINTENANCE.  459 

a  few  years  ago,  when  a  great  system,  extending 
over  several  states,  was  suddenly  paralyzed  for  a 
similar  reason.  Yet  the  event  actually  occurred. 
Moreover,  the  circumstances  were  such  as  to 
suggest  the  possibility  of  its  recurrence.  Let  us 
suppose  that  for  some  reason  every  railroad  man, 
or  the  great  bulk  of  them,  struck,  as  they  did  in 
the  particular  section  I  have  referred  to.  In  such 
event,  the  operation  of  railroads  would  be  impos- 
sible. No  other  course  would  be  left  to  owners 
but  to  shut  up  their  property. 

Where  labor  has  the  disposition  to  organize 
and  act  in  concert  over  a  great  extent  of  coun- 
try, everything  is  possible.  The  nineteenth  cen- 
tury is  peculiarly  the  age  of  possibilities  of  this 
nature.  Centralization  is  its  watchword.  We 
observe  it  in  the  growth  of  corporations,  man- 
ufactories and  other  enterprises.  It  was  the 
concentration  of  capital,  perhaps,  that  suggested 
the  centralization  of  labor— the  delegating  to  an 
agent  the  right  to  arbitrarily  control  the  many. 
The  co-operative  organization  of  labor,  however, 
is  more  extended  than  that  of  capital.  The  lat- 
ter is  necessarily  restricted  and  isolated  in  its 
efforts.  Labor  groups  great  masses  of  men  em- 
ployed far  apart  over  wide  areas  of  country. 
If  these  organizations  are  not  wisely  governed, 
they  will  ultimately  involve  a  corresponding 
centralization  of  capital.  Certainly  they  ^vyill 
render  the  continuance  of  business  under  exist- 
ing conditions  impossible.  Not  only  will  the 
railway  system  be  broken  up,  but  all  other 


460     FINANCING,  CONSTRUCTING,  MAINTAINING. 

industrial  interests  will  be  disturbed,  and  in 
many  cases  destroyed. 

In  the  event  railways  were  closed  under  cir- 
cumstances such  as  I  have  named,  the  duration 
of  the  suspension  would  depend  very  largely  on 
the  disposition  and  ability  of  the  people  to  pro- 
tect those  who  sought  to  reopen  them.  Mean- 
while the  calamities  that  would  grow  out  of  the 
upheavi.l  W7ould  require  many  years  to  heal. 

WlLit  conditions  would  attend  a  general  cessa- 
tion of  railway  operations?  Could  the  owners  of 
railroads  permit  their  property  to  lie  idle?  Do 
railroad  companies  possess  the  passive  element 
that  is  so  great  a  source  of  strength  to  capital 
invested  in  other  enterprises?  It  is  here  that  a 
secret  of  the  power  of  capital  lies.  Its  growth, 
beneficent  influence  and  perpetuity  depend  upon 
the  possession  of  this  source  of  strength.  When 
no  longer  able  to  exercise  this  negative  force,  it 
will  cease  to  exist. 

What  is  the  effect  of  idleness  upon  railroad 
property?  Wherein  does  it  deteriorate?  What 
is  the  extent  of  the  deterioration?  What  out- 
lay does  the  maintenance  of  a  railway  involve? 
Should  owners  suffer  a  great  loss  in  the  effort  to 
maintain  the  rights  of  their  property,  or  should 
they  effect  an  immediate  settlement  with  disaf- 
fected employes,  on  the  best  terms  possible?  It 
is  upon  such  questions  that  the  contingency  of 
a  railway  company  closing  its  affairs  for  six 
months,  or  a  year,  or  two  years,  may  hinge,  and 
upon  the  wisdom  and  courage  governing  those 


THINGS  AFFECTING  MAINTENANCE.  461 

making  the  decision,  the  future  of  mankind  may 
depend. 

Let  us  suppose  that  a  railway  company  decides, 
in  view  of  the  fact  that  it  can  no  longer  operate 
its  property  in  harmony  with  what  it  considers 
to  be  its  interest  and  the  interest  of  the  public,  to 
close  its  business  until  such  time  as  its  just  rights 
are  accorded. 

What  would  be  the  expense  of  maintaining  its 
property  under  such  conditions?  The  question 
is  an  interesting  one  and  suggests  careful  inquiry. 

In  the  event  of  the  suspension  of  a  railway, 
what  would  be  the  effect  upon  the  property? 
What  would  be  the  minimum  amount  it  would 
be  necessary  to  expend  to  preserve  it  from  seri- 
ous deterioration  ?  These  questions  cannot  be 
definitely  answered.  Having  no  income,  cost,  it 
is  manifest,  would  have  to  be  raised  by  assess- 
ments if  no  reserves  were  laid  by  to  meet  such 
contingencies.  But  in  regard  to  reserves:  Is  it 
not  incumbent  upon  every  company  to  possess, 
according  to  its  ability,  a  reserve  fund  of  this 
nature?  Is  it  not  a  part  of  the  machinery  of 
maintenance?  The  fund  need  not  be  unproduc- 
tive. Judiciously  placed,  it  will  be  a  source  of 
income  as  well  as  strength.  Its  effect,  moreover, 
will  be  evinced  in  the  market  value  of  a  com- 
pany's securities.  It  will  be  in  the  nature  of  a 
guaranty,  enabling  its  possessor  to  meet  every 
call  upon  him.  With  such  a  fund  taxes  could 
be  paid,  sinking  funds  met,  interest  on  mort- 
gages satisfied,  and  the  expense  of  maintenance 


462     FINANCING,  CONSTRUCTING,  MAINTAINING. 

provided  for  a  period  proportionate  to  the  ex- 
tent of  the  fund,  without  reference  to  current 
receipts. 

It  may  be  assumed,  I  think,  in  the  event  a 
company  found  it  necessary  to  suspend  business, 
that  the  great  bulk  of  its  bondholders  would 
waive  interest  payments  for  awhile.  The  reserve 
fund  would  provide  for  the  balance.  The 
amount  of  the  fund  should  depend  upon  the 
amount  of  taxes,  interest,  tolls,  sinking  funds  and 
expense  of  maintenance.  Expenditures  for  the 
last  named  purpose  are  imperative.  They  must 
be  met  as  they  accrue,  otherwise  the  owner  suf- 
fers enormous  usury  for  neglect  to  preserve  his 
property.  Would  the  cost  of  maintenance  be  so 
great  as  to  prevent  the  proprietor  meeting  it?  I 
think  not,  if  he  possessed  a  moderate  reserve  fund. 

Stripped  of  all  glamour,  railway  property  dif- 
fers very  little  from  other  property  used  in  manu- 
facturing, except  that  it  is  scattered  over  a  wide 
territory.  In  the  case  of  private  manufacturers, 
their  property  lies  within  a  narrow  limit  and 
when  not  in  use  the  gates  are  shut  and  the  pub- 
lic excluded,  so  that,  no  matter  how  great  its 
value,  its  guardianship  is  compassed  within  the 
care  of  a  watchman.  He  not  only  serves  to  pro- 
tect the  property,  but  helps  to  prevent  its  deteri- 
oration. Unfortunately,  this  simple  disposition 
is  impossible  in  the  case  of  railroad  property. 
Widely  scattered,  it  is  everywhere  exposed.  Its 
greatest  security  lies  in  the  difficulty  of  destroy- 
ing or  removing  it.  This  renders  it  possible  for 


THINGS  AFFECTING  MAINTENANCE.  463 

the  police  force  of  a  country  to  look  after  its 
protection  (if  it  is  so  inclined)  without  material 
outlay.  This  feature  would  be  of  especial  value 
to  a  company  compelled  to  stop  business.  Only 
that  portion  of  its  property  endangered  by  fire 
would  require  especial  guardianship.  Even  here 
the  risk  would  be  slight.  Moreover,  in  consider- 
ing the  safety  of  railroad  property  under  condi- 
tions such  as  I  have  named,  we  must  remember 
that  the  state  must  aid  the  proprietor,  he  being 
a  taxpayer.  In  the  event  it  does  not,  it  must 
reimburse  him  for  any  damage  he  suffers. 
Losses,  therefore,  that  arise  from  the  acts  of 
mobs  or  lawless  combinations  must  be  reim- 
bursed and  thus  will  not  fall  upon  the  proprie- 
tors of  railroads,  except  in  so  far  as  they  are 
taxed  with  others.  The  exercise  of  reasonable 
precautions  in  the  preservation  of  the  property  of 
a  railroad  is,  however,  under  all  circumstances  a 
duty.  This  duty  railway  companies  have  never 
disregarded.  So  that,  in  the  event  they  closed 
their  properties,  they  would  still  continue  to  ex- 
ercise general  and  constant  watchfulness.  The 
expense  of  this  would  be  chargeable  to  mainte- 
nance. Would  the  duty  require  special  watch- 
men, or  would  the  force  required  to  keep  up  the 
organization  be  sufficient?  I  think  the  latter. 
In  determining,  therefore,  the  force  necessary  to 
maintain  a  property,  we  also  cover  its  protecting 
force,  except  in  isolated  cases. 

The  maintenance  of  the  property  of  a  railroad 
involves  many  things  not  capable  of  demoustra- 


464     FINANCING,  CONSTRUCTING,  MAINTAINING. 

tion  in  advance;  contingencies  that  we  cannot 
foresee  nor  estimate,  because  dependent  upon 
circumstances  and  the  peculiar  features  of  a 
property. 

In  considering  the  cost  of  maintaining  a  road, 
the  cost  of  maintenance  of  organization  must  not 
be  overlooked.  This  latter,  however,  in  the  case 
of  a  property  closed  to  business,  would  depend 
upon  whether  the  cessation  was  for  a  long  or 
short  period.  If  the  former,  the  cost  would  not 
be  nearly  so  great  as  if  the  stoppage  were  for 
a  short  period.  If  the  cessation  were  likely  to 
extend  over  a  long  period,  the  traffic  organiza- 
tion, or  that  portion  of  the  force  connected  with 
or  growing  out  of  the  conduct  of  business,  could 
be  wholly  dispensed  with,  or  so  greatly  reduced 
as  to  be  no  longer  distinguishable  as  an  organiza- 
tion. If,  however,  the  stoppage  were  only  for  a 
short  or  indefinite  period,  it  would  be  necessary 
to  preserve  at  least  the  nucleus  of  an  organiza- 
tion, such  portion  of  the  force  as  would  render 
the  resumption  of  business  practicable  without 
great  delay.* 

If  the  stoppage  were  likely  to  continue  over  a 
long  period,  many  expenses  that  under  other 
circumstances  would  be  necessary,  might  be 
avoided.  Thus  the  cost  of  keeping  up  the  road 
at  a  point  that  would  permit  the  daily  movement 

*  Unless,  indeed,  it  was  assumed  that  the  whole  force  might 
be  brought  together  again  at  will,  in  which  event  the  whole 
traffic  force  might  be  dispensed  with.  This  is  what  would  prob- 
ably be  done. 


THINGS  AFFECTING  MAINTENANCE.  46,5 

of  trains  at  ordinary  rates  of  speed  would  not  be 
required.  It  would  not  be  necessary  to  repair 
from  day  to  day  the  inroads  of  storms  or  the 
damages  caused  by  frost,  and  expenses  attending 
the  use  of  bridges,  culverts,  buildings  and  ma- 
chinery might  be  wholly  avoided,  or  it  would  be 
necessary  at  best  to  give  them  only  cursory  atten- 
tion. Effort  would  be  directed  merely  to  pre- 
serving the  property  from  permanent  injury. 
Thus  maintained,  considerable  time  would  be 
required  to  place  it  in  shape  for  resuming  active 
operations  when  the  embargo  was  lifted.  Build- 
ings would  have  to  be  put  in  order,  tracks  re- 
paired, bridges  and  culverts  looked  after,  and  a 
thousand  things  attended  to  before  general  re- 
sumption would  be  possible.  The  delay  would 
be  unavoidable,  as  the  resources  of  the  strongest 
company  would  not  warrant  it  in  keeping  up  its 
property  at  the  maximum  point  of  efficiency 
throughout  an  indefinite  period.  In  attempting, 
therefore,  to  determine  the  cost  of  maintain- 
ing a  property  without  reference  to  traffic, 
all  the  conditions  must  be  known.  If  resump- 
tion of  business  were  likely  to  occur  within 
a  reasonable  time,  the  expense  of  maintenance 
would  not  be  much  less  than  during  active 
operations. 

The  disintegration  of  property  from  natural 
causes  is  very  nearly  the  same,  whether  used  or 
not.  If  cessation  of  business  were  likely  to 
extend  over  an  indefinite  period,  the  advisability 
of  reducing  expenses  would  be  so  great  that  we 

30    Vol.  3 


466     FINANCING,  CONSTRUCTING,  MAINTAINING. 

may  be  sure  every  outlay  would  be  cut  down  to 
the  lowest  possible  figure.* 

The  maintenance  of  a  property  covers  many 
great  expenses  arising  from  natural  causes. 
Little  has  been  done  to  determine  the  amount  of 
these  expenses  aside  from  traffic.  Few  things  are 
less  understood.  Every  expense  being  primarily 
due  to  traffic,  no  attempt  has  been  made  to 
effect  a  separation.  Business  being  the  incentive 
to  construct  a  railway,  the  whole  cost  of  operat- 
ing is  properly  chargeable  thereto.  Thus,  rates 
must  conform  to  cost,  or  if  they  fall  short  bank- 
ruptcy follows.  Many  expenses  do  not  depend 
except  primarily  on  traffic,  but  in  attempting  to 
separate  the  cost  of  maintenance  arising  from 
natural  causes  from  that  due  to  traffic,  I  do  not 
wish  to  be  understood  that  such  expenditures  are 
distinct  from  traffic  or  that  traffic  has  no  obliga- 
tion to  bear  the  burden. 

Any  attempt  to  separate  the  fixed  expenses  of 
maintenance  from  those  occasioned  by  traffic 
must  be  largely  speculative,  but  a  separation, 
however  imperfect,  cannot  but  possess  great 
interest  to  those  who  own  and  operate  railways. 
It  enables  them  to  view  many  questions  from  a 
higher  standpoint  than  they  otherwise  would,  and 
proves  valuable  in  directing  inquiry  into  other 

*  It  is  possible,  in  the  event  a  railroad  company  found  it 
impossible  to  operate  its  property,  that  the  wisest  course  to 
pursue  would  be  to  dismiss  the  whole  force.  Such  a  course,  it 
is  probable,  would  be  thought  the  safer  one  to  pursue  and  the 
one  most  likely  to  bring  about  a  quick  and  satisfactory  settle- 
ment. 


THINGS  AFFECTING  MAINTENANCE.  467 

and  collateral  subjects.  Knowledge  is  not  of  so 
much  value  for  a  specific  thing  as  for  its  contin- 
gent revelations  and  the  thoughts  it  suggests. 
And  so  it  will  prove  here.  Even  the  most  imper- 
fect statement  of  the  expenses  of  maintenance  of 
railways  affords  suggestions  in  other  directions 
to  those  who  do  not  regard  the  information  in 
itself  of  value.  Thus,  while  a  manager  may  not 
care  what  relation  fixed  expenses  of  maintenance 
bear  to  total  expenses,  yet  the  information  is 
valuable  to  him  in  other  directions  or  in  special 
instances.  Take  the  case  of  track  rails  for  illus- 
tration. Experts  with  whom  I  have  communi- 
cated as  to  the  relative  deterioration  of  rails  from 
climate  and  traffic,  have  stated  that  a  rail  would 
remain  fit  for  use  forever,  if  trains  were  not  run 
over  it.  Others  put  the  deterioration  from 
climatic  causes  at  two  per  cent. ;  others  again  at 
five  per  cent.,  and  so  on.  As  a  matter  of  fact,  the 
deterioration  of  rails  from  climatic  causes,  while 
not  great,  is  marked  and  cumulative.  Deteriora- 
tion of  other  material  is  much  greater.  How- 
ever, I  cannot  enter  here  into  a  scientific  dis- 
cussion of  the  effect  of  climatic  influences 
upon  material.  I  am  not  competent  to  do  so. 
I  merely  cite  the  case  of  rails  to  illustrate 
the  lack  of  information  on  the  subject  by  those 
whose  duties  lie  wholly  in  this  particular  depart- 
ment. 

The  natural  decay  of  railway  property  is,  in 
many  cases,  much  greater  than  the  damage  occa- 
sioned by  use.  Where  the  business  is  great  the 


468     FINANCING,  CONSTRUCTING,  MAINTAINING. 

relation  of  fixed  expense  of  maintenance  to  traffic 
is,  of  course,  less. 

Whatever  a  property  suffers  from  natural  de- 
cay is  a  fixed  expense.  Cost  of  organization  is 
also,  to  a  certain  extent,  a  fixed  charge.  It  is, 
however,  never  the  same.  It  is  much  less,  rela- 
tively, for  a  company  actively  engaged  than  when 
the  contrary  is  the  case,  for  the  reason  that  in  the 
former  instance  a  proportion  of  the  cost  is  merged 
in  current  business.  Thus,  a  superintendent  will 
not  only  maintain  the  property,  but  also  superin- 
intend  its  business.  In  either  case  he  is  essential, 
and  while  he  must  possess  greater  diversity  of 
knowledge  to  enable  him  to  attend  to  both  these 
duties  than  to  either  singly,  yet  the  increased 
cost  is  not  great. 

The  number  of  skilled  laborers  required  in  the 
operations  of  railroads  is  much  greater  than  is 
supposed.  They  form,  to  a  certain  extent,  part 
of  the  organization,  but  embrace  many  men  not 
usually  classed  under  this  head.  Everyone  under- 
stands that  an  engineer  must  be  technically  qual- 
ified; the  value  of  skill  upon  the  part  of  the 
fireman  is  also  understood.  The  necessity  of 
technical  knowledge  on  the  part  of  machinists  is 
equally  well  known;  but  minor  officials,  clerks 
and  foremen  must  also  possess  technical  skill  of 
a  high  order,  coupled  with  a  practical  knowledge 
of  the  property  and  its  business.  This  is  not  so 
well  known.  No  class  of  labor  possesses  so  much 
technical  knowledge  as  the  clerical  force  of  a 
railroad,  and  by  clerical  force  I  mean  the  body  of 


* 

THINGS  AFFECTING  MAINTENANCE.  469 

employes  concerned  in  the  movement  of  traffic, 
including  those  connected  with  accounts  and 
finances.  They  are  the  fingers  of  the  organiza- 
tion, and,  in  a  great  sense,  its  intellectual  force. 
The  affairs  of  a  railroad  are  so  great,  and  extend 
over  so  wide  a  range  of  thought,  that  managers 
can  do  little  more  than  use  the  information  the 
clerical  force  collects.  This  force,  however,  in 
the  event  of  the  stoppage  of  business  on  a  rail- 
road, would  have  nothing  to  do,  and,  therefore, 
would  be  dispensed  with.  But  only  those  who 
have  watched  the  growth  of  a  railroad,  and  the 
patience  required  to  build  up  an  efficient  force, 
can  estimate  the  loss  its  abandonment  would 
finally  entail.  However,  necessity  does  not  rec- 
ognize distinctions  of  this  kind.  If,  therefore, 
through  upheavals  of  labor  or  other  disorders,  a 
railway  were  compelled  to  suspend  business  in- 
definitely, it  would  come  out  of  the  struggle 
stripped  of  its  organization  in  this  respect.  No 
attempt,  therefore,  need  be  made  here  to  deter- 
mine the  fixed  expenses  for  such  railroads  on  this 
account. 

A  fixed  expense  of  Organization  (or  Manage- 
ment) under  normal  conditions  is  the  pay  of 
officers  and  employes  necessary  to  the  conduct  of 
traffic.  This  force  embraces  the  management, 
heads  of  departments  and  chiefs  of  bureaus  and 
their  immediate  assistants.  Those,  in  fact,  pos- 
sessing a  knowledge  of  the  departments  and 
versed  in  the  company's  affairs.  Such  a  force 
cannot  be  secured  at  will,  and  business  cannot  be 


470     FINANCING,  CONSTRUCTING,  MAINTAINING. 

carried  on  without  it.  It  grows  with  the  cor- 
poration, and  should  become  more  efficient  every 
year.  The  necessary  force  of  a  road  also  em- 
braces the  agents  at  stations,  and  if  business  is 
great,  their  immediate  assistants;  those,  in  fact, 
who  possess  high  technical  knowledge.  They 
constitute  a  fixed  charge.  Those  engaged  in 
mechanical  or  simple  work  about  the  offices, 
warehouses  and  other  buildings  do  not,  as  they 
may  be  replaced  at  will. 

The  cost  of  watching  a  property  is  not  a  fixed 
expense,  or  at  least  is  only  partially  so,  as  this 
duty  may  be  performed  by  employes  who  form  a 
part  of  the  fixed  cost.  The  nucleus  of  a  train 
force  is  a  fixed  expense  of  maintenance.  In  the 
case  of  conductors  and  baggagemen  it  embraces, 
let  us  say,  ten  per  cent,  of  the  force.  The  skill 
of  this  body  constitutes  the  nucleus  of  a  complete 
organization.  In  the  same  way  ten  per  cent,  of 
the  engineers  and  firemen  may  be  denominated 
as  fixed.  Such  a  train  force  would  prove  ample 
to  guard  the  rolling  stock  and  machinery  and 
maintain  it  in  a  high  state  of  efficiency. 

The  technical  force  retained  by  a  company 
(under  the  conditions  I  have  named)  may  be 
further  utilized  in  the  physical  maintenance  of 
the  property,  and  thus  serve  a  double  purpose. 
Employes  occupied  in  soliciting  business  do  not 
constitute  a  fixed  expense.  Similarly,  operat- 
ing expenses  covering  personal  injuries,  con- 
tingent expenses,  stationery,  printing,  supplies, 
advertising  and  lubricants  belong  to  traffic,  or 


THING  S  AFFECTING  MA  IX  TUX  A  X  <  'K.  4  7 1 

if  any  portion  is  a  fixed  expense  it  is  nominal 
only. 

The  forces  of  a  railroad  that  constitute  a  fixed 
charge  will  find,  in  the  main,  active  employment, 
even  if  the  property  is  closed.  However,  it  does 
not  necessarily  follow  that  there  would  be  no  re- 
duction in  the  wages  of  this  force.  On  the  con- 
trary, it  is  probable  that  a  very  large  reduction 
would  be  made.  The  necessity  of  such  a  course 
and  its  justness  would  be  apparent,  and  would 
be  cheerfully  acquiesced  in.  The  amount  of  this 
reduction  would,  it  is  probable,  approximate  fifty 
per  cent.  That  it  would  involve  hardship,  goes 
without  saying,  but  as  this  hardship  would  ex- 
tend to  the  owners  of  the  property  as  well,  it 
would  be  borne  cheerfully.  If  the  suspension 
were  likely  to  be  of  long  continuance,  the  re- 
duction would  be  even  greater.  However,  fifty 
per  cent,  may,  I  think,  be  estimated  as  the  aver- 
age. In  reference  to  the  force  it  would  be  neces- 
sary to  discharge  (in  the  event  of  suspension),  it 
is  probable  the  majority  of  the  men  would  await 
re-employment.  This  would  certainly  be  the 
case  if  the  stoppage  were  not  likely  to  be  of  long 
duration,  or  if  the  circumstances  attending  dis- 
missal did  not  involve  personal  animosities.  It 
would  be  apparent  to  men  thus  situated  that 
their  interests  would  be  more  likely  to  be  con- 
served by  awaiting  re-employment  than  by  seek- 
ing engagement  elsewhere.  It  might  be  necessary 
in  some  cases  (as  it  would  indeed  be  both  politic 
and  wise  wherever  possible),  to  allow  this  wait- 


472     FINANCING,  CONSTRUCTING,  MAINTAINING. 

ing  force  a  small  sum  monthly.  Such  a  course 
would  be  eminently  humane,  if  the  resources  of  a 
company  permitted.  I  assume,  of  course,  in  sug- 
gesting this  gratuity,  that  harmony  of  relation- 
ship exists  between  employer  and  employe. 

The  best  of  feeling  should  ever  be  maintained 
between  railroad  companies  and  their  employes. 
It  is  possible,  indeed  probable,  that  the  latter  may 
have  more  or  less  grievances,  real  and  imagined, 
but  that  these  grievances  are  such  as  to  justify 
indifference  or  disloyalty  is  impossible.  Nor  can 
they  be  so  great  as  not  to  be  more  likely  to  be 
amicably  arranged  by  conciliatory  measures  than 
by  strikes  or  other  violent  means.  The  interest 
of  the  proprietor  in  those  who  operate  his  prop- 
erty is  too  intimate,  too  vital,  to  permit  him  to 
disregard  their  welfare  or  to  refuse  to  remedy 
just  causes  of  complaint. 

And  above  all,  employes  should  not,  in  enumer- 
ating their  own  grievances,  forget  those  of  the 
employer.  No  intelligent  person  who  has  ob- 
served the  operation  of  corporations  carried  on 
by  hired  agents  but  must  have  noticed  innumer- 
able instances  of  neglect  on  the  part  of  such 
agents,  of  manifest  inefficiency,  gross  wasteful- 
ness, inattention  to  duty,  idleness,  and  other  evi- 
dences of  disregard  of  the  interests  of  the  owner. 
Every  such  instance  is  a  legitimate  and  proper 
subject  of  complaint  on  his  part,  and  while  he 
may  seek  to  prevent  such  acts,  still  his  efforts  in 
this  direction,  no  matter  how  watchfully  or  intel- 
ligently directed,  can  never  be  wholly  successful. 


THINGS  AFFECTING  MAINTENANCE.  473 

Employes,  therefore,  while  enumerating  their 
grievances,  should  not  be  unmindful  of  those  of 
their  employer. 

In  the  case  of  a  railroad,  the  identity  of  the 
proprietor  is  so  covered  up  in  the  multiplicity  of 
owners,  in  the  rules  and  regulations  of  the  service, 
and  in  the  acts  of  managers  and  others,  that  we 
cannot  wonder  the  employe  sometimes  forgets 
there  is  an  owner — a  man  like  himself;  and  in  do- 
ing so  fails  to  recognize  his  rights  and  forgets  his 
own  duties  and  responsibilities.  If  the  owner 
possessed  greater  personality,  were  present  on  the 
ground,  were  a  person  to  whom  the  employe 
could  listen  and  might  appeal,  he  would  appre- 
ciate his  existence  more  vividly.  In  considering, 
therefore,  the  relations  which  exist  between 
capital  and  labor  in  connection  with  railroads, 
the  first  thing  for  the  employe  to  do  is  to  dismiss 
his  prejudices;  to  remember  that  if  he  has 
grievances,  so  also  has  the  owner,  and  that,  as  a 
rule,  the  grievances  of  the  latter  are  more  real 
than  those  of  the  employe.  No  railway  employe, 
not  blinded  by  passion,  but  knows  that  he  is,  as 
a  rule,  fairly  treated. 

The  grievances  of  employes  are  often  more 
imaginary  than  real,  and  when  real  come,  not 
from  the  owner,  as  a  rule,  but  from  those  he  is 
compelled  to  trust.  The  remedy  does  not,  there- 
fore, lie  in  indiscriminate  attacks  upon  property, 
but  in  an  appeal  to  owners. 

Too  great  care  cannot  be  exercised  by  employes 
of  corporations  not  to  confound  the  owner  with 


474     FINANCING,  CONSTRUCTING,  MAINTAINING. 

the  manager.  The  owner  will  never,  it  is  safe  to 
say,willfully  or  persistently  disregard  the  welfare 
of  his  employes.  Their  interests  are  so  inaliena- 
bly connected  with  his,  that  to  treat  them  un- 
fairly would  be  suicidal.  This  truth  is  not  always 
remembered  by  employes.  No  one  who  is  depend- 
ent upon  the  good  wall  and  fidelity  of  others  for 
the  maintenance  of  his  interests,  like  the  owners 
of  railroads  are,  can  afford  to  permit  them  to 
remain  in  ignorance  of  his  good  intentions.  On 
the  contrary,  his  duty  and  interest  alike  demand 
that  he  should  cultivate  such  relations  with  them 
as  may,  at  all  times,  assure  them  of  his  friendly 
interest  in  their  welfare. 

Men  who  intrust  the  management  of  their 
property  to  others  must  do  so  unqualifiedly,  but 
such  delegation  of  power  should  never  extend  to 
the  relinquishment  of  the  right  and  duty  of  look- 
ing after  the  welfare  of  their  employes.  A  pro- 
prietor will  ever  consult  his  welfare  by  such 
manifestation  of  interest  in  his  servants,  and  any 
neglect  to  fulfill  this  cardinal  duty  of  ownership 
will  redound  to  his  injury.  By  many  owners 
manifestation  of  such  interest  is  thought  to  be 
subversive  of  discipline.  The  answer  to  this  is 
that  when  an  owner  cannot  come  in  contact  with 
his  employes  without  jeopardizing  discipline,  it 
ought  not  to  require  an  outbreak  of  his  servants, 
or  the  destruction  of  his  property,  to  convince 
him  that  there  is  a  defect  somewhere  in  the 
method  of  administering  his  property.  Discipline 
that  is  dependent  upon  terrorism,  upon  ostracis- 


THINGS  AFFECTING  MAINTENANCE.  475 

ing  (or  sequestrating)  the  employe,  upon  separat- 
ing him  from  the  acquaintance  or  sympathy  of 
the  owner,  is  a  gross  perversion  of  responsible 
methods  of  government,  and  wherever  practiced 
may  be  accepted  as  evidence  of  a  disregard  of 
the  rights  of  owners.  If  the  history  of  corpora- 
tions in  the  United  States  teaches  one  fact  more 
clearly  than  another,  it  is  that  the  owners  of 
corporate  property  must  personally  interest  them- 
selves in  the  affairs  of  their  employes,  lest  their 
personality  be  forgotten  and  their  property  lost. 

Ownership  of  property  presupposes  the  duty  of 
guardianship,  including  a  paternal  interest  in  the 
operative,  and  its  preservation  to  the  owner  will 
ever  depend  upon  the  general  and  wise  exercise 
of  his  duty  in  this  regard. 

Continuing  our  examination  of  the  cost  of 
maintaining  a  railroad.  This  cost  is  much  in- 
creased by  the  interference  offered  by  traffic. 
Thus,  repairs  of  track  are  retarded  by  the  passing 
of  trains  and  the  diverting  influences  that  attend 
their  movement.  Necessary  repairs  to  equip- 
ment and  machinery  are  oftentimes  delayed  be- 
cause of  the  pressing  need  for  their  use  in  handling 
traffic.  Many  other  instances  might  be  cited  if 
necessary. 

Insurance  of  property  is  a  fixed  expense,  ex- 
cept in  so  far  as  it  covers  current  traffic.  Prac- 
tices in  regard  to  insurance  are  not  uniform. 
In  some  cases  it  is  the  policy  to  insure  every- 
thing. Other  companies  restrict  their  insurance 
to  particular  instances  of  special  importance. 


476     FINANCING,  CONSTRUCTING,  MAINTAINING. 

Others,  again,  do  not  insure  at  all.  I  do  not 
know  that  the  circumstances  likely  to  attend  a 
cessation  of  business  would  be  such  as  to  require 
that  a  company's  policy  in  this  respect,  whatever 
it  might  be,  should  be  changed.  Risk  from  the 
movement  of  trains  and  the  conduct  of  business 
generally  would,  it  is  apparent,  be  much  less 
than  under  normal  conditions,  while  damages 
arising  from  the  acts  of  mobs  would  have  to  be 
made  good  by  the  government.  No  two  com- 
panies view  the  question  of  insurance  from  the 
same  standpoint,  and  no  estimate  can,  therefore, 
be  made  as  to  the  extent  of  a  company's  expend- 
itures in  this  connection.  After  considerable 
observation  of  the  effect  of  insurance  and  non- 
insurance,  I  should  not  think  a  company  justified 
in  expending  a  large  amount  in  this  direction 
unless  its  surplus  were  abundant  and  well  assured. 
The  magnitude  of  its  interests  renders  it  quite 
proper  for  it  to  assume  risks  of  this  nature.  The 
cost  of  insuring  the  property  of  a  company  may 
be  reduced  to  the  minimum,  in  the  event  of  stop- 
page of  business  from  a  strike  or  otherwise. 
Whatever  is  paid  in  this  direction  constitutes  a 
fixed  charge. 

Considered  from  the  standpoint  of  organization 
and  proprietorship,  the  taxes  of  a  property  con- 
stitute a  fixed  expense  without  reference  to  the 
basis  upon  which  they  are  predicated.  In  this 
last  respect  the  widest  differences  exist.  In  some 
cases  taxes  are  based  on  real  and  personal  prop- 
erty. In  others  upon  earnings.  The  amount  and 


THINGS  AFFECTING  MAINTENANCE.  477 

value  of  outstanding  capital  is  sometimes  the 
factor.  When  the  tax  is  based  on  property,  the 
levy  would  be  the  same  if  the  road  were  not 
operated,  though  it  is  possible  a  reduction  might 
be  made  under  such  circumstances.  Certainly  it 
should  be,  as  it  is  manifest  that  property  of  this 
kind  which  is  earning  nothing  is,  constructively 
at  least,  worth  nothing  and  ought  not  to  be  taxed 
except  upon  a  nominal  basis.  Practically,  however, 
only  a  small  reduction  would  probably  be  made. 
When  taxes  are  based  on  earnings,  it  is  manifest 
that  a  cessation  of  business  would  mean  cessation 
of  taxes,  unless  the  stoppage  were  so  prolonged 
as  to  suggest  some  other  basis.  In  any  event, 
however,  the  extent  of  a  company's  obligations 
for  taxes,  whatever  they  may  be,  become,  in  the 
case  of  an  idle  property,  a  fixed  charge. 

It  is  impossible  to  determine  accurately  what 
proportion  of  the  cost  of  maintaining  railway 
property  arises  from  climatic  causes.  Two 
methods  suggest  themselves  by  which  to  estimate 
the  amount.  The  first  is  by  a  survey  of  the 
property  in  which  every  feature  shall  be  ascer- 
tained. This  method  is  the  best  when  practicable. 
But,  unfortunately,  it  is  not  generally  practicable. 
The  second  that  suggest  itself  is  the  relation 
which  cost  of  maintenance  bears  to  the  total  cost 
of  operating.  It  is  only  approximate  and  not 
reliable  for  our  purpose. 

Different  properties  are  affected  by  different 
climatic  influences.  Thus,  the  railways  of  the 
North  and  the  South  have  dissimilar  conditions  to 


478     FINANCING,  CONSTRUCTING,  MAINTAINING. 

meet.  Those  of  each  section  necessitate  peculiar 
outlays.  Thus,  deterioration  of  wood  in  the  South 
is  much  more  rapid  than  in  the  North,  but,  on 
the  other  hand,  Northern  roads  suffer  greatly 
from  frost  and  the  abrupt  changes  peculiar  to  a 
cold  country.  The  conditions  most  favorable  to 
the  preservation  of  material  are  a  mild,  dry 
climate,  but  it  is  probable  the  roads  of  the  South 
have,  on  the  whole,  advantages  over  those  of 
other  localities  in  the  cheapness  with  which  they 
operate  and  maintain  their  properties. 

More  than  anything  else,  fixed  expense  of 
maintenance  is  dependent  upon  quality  of  mate- 
rial, the  measure  of  intelligence  evinced  in  locat- 
ing and  constructing  a  line,  and  finally  the  skill 
exercised  in  protecting  the  property.  The  nature 
of  the  structure  is  important;  stone  is  more 
durable  than  wood;  brick  more  lasting  than  grout. 
But  the  duration  of  the  structure  is  largely 
dependent  upon  the  care  with  which  it  is  con- 
structed and  looked  after.  This  rule  applies  to 
the  roadbed  and  its  ballast  as  fully  as  to  build- 
ings and  other  structures. 

The  cost  of  keeping  rolling  stock  in  repair  is 
greatly  increased  by  deterioration  from  natural 
causes.  This  deterioration  is  greater  when  the 
plant  is  actively  employed  than  if  carefully 
housed,  as  much  of  it  would  be  if  not  in  use. 
The  facilities  of  railroads  every  day  become  more 
ample,  but  they  do  not  as  yet  generally  contemplate 
placing  passenger  and  freight  cars  under  cover 
when  not  in  use.  This  adds  greatly  to  the  cost 


THINGS  AFFECTING  MAINTENANCE.  479 

of  their  maintenance.  Referring  to  the  cost  of 
preserving  equipment,  an  interesting  writer  on 
the  subject  says:  "A  locomotive  taken  into  the 
shop  and  covered  with  tallow  would  be  ready  for 
service  with  very  slight  repair  to  the  stack  and 
other  parts.  The  atmosphere  would  have  a 
greater  effect  upon  freight  cars,  and  it  would  be 
necessary  to  paint  them  at  periods  (probably  of 
considerable  length),  even  if  not  in  use,  as  they 
would  suffer  from  dry  rot  and  other  causes. 
With  regard  to  passenger  cars  on  the  same 
basis,  the  percentage  would  not  be  so  great  as 
freight  cars,  as  the  material  and  finish  are  bet- 
ter, but  they  would  require  a  coat  of  varnish,  at 
long  intervals,  to  preserve  the  outside  paint." 

The  wear  and  tear  of  equipment  from  traffic  is, 
of  course,  proportionate  to  its  use,  but  cost  will 
ever  depend  largely  upon  the  intelligence  and 
promptness  with  which  repairs  are  made.  If 
locomotives  are  not  properly  painted,  cleaned 
and  housed;  if  passenger  cars  are  not  kept 
cleaned,  painted  and  varnished;  if  freight  cars 
are  not  kept  painted  and  repaired  as  needed;  if 
machinery  is  not  carefully  looked  after,  the  dete- 
rioration will  be  rapid  and  marked.  The  tele- 
graphic plant  of  a  company,  including  lines, 
furniture,  tools,  machinery,  batteries,  instru- 
ments and  other  appurtenances,  suffers  constant 
deterioration  from  natural  causes,  and  although 
lines  are  much  better  constructed  than  formerly, 
the  deterioration  has  only  been  lessened,  not 
obviated. 


480     FINANCING,  CONSTRUCTING,  MAINTAINING. 

It  is  apparent  from  the  foregoing  that  differ- 
ences exist,  and  ever  will  exist,  as  to  the  outlay 
of  railroads,  that  arise  from  natural  causes. 
Accurate  data,  therefore,  in  regard  to  a  partic- 
ular road  will  not  be  conclusive  in  regard  to 
others.  It  will,  however,  afford  an  approximate 
estimate  in  many  cases,  for  however  greatly  rail- 
ways differ  from  each  other  in  particular  things, 
they  are  generally  uniform.  If,  therefore,  data 
were  obtainable  for  several  railroads,  this  aver- 
age would  afford  a  glimpse,  at  least  (but  not 
more),  of  railways  similarly  situated.  I  have 
this  data  for  a  period  of  twenty  years,  for  rail- 
ways thirty-five  hundred  miles  long,  located  in 
a  temperate  climate,  subject  to  such  extremes  of 
heat  and  cold  as  are  to  be  found  in  the  great  lake 
region  of  the  United  States.  Conditions  here,  as 
regards  wages  and  cost  of  material,  are  those  of 
American  railways  generally.  The  results  are 
embodied  in  the  appendix  hereto.*  They  show  the 
relation  that  particular  items  of  maintenance  bear 
to  the  total  cost  of  maintenance.  Also  the  pro- 
portion that  cost  of  maintenance  bears  to  other 
expenses.  They  also  show  cost  arising  from 
climatic  causes,  and  the  expense  of  maintaining 
a  nucleus  of  organization.  I  have  not  attempted 
to  give  the  aggregate  cost  in  dollars  and  cents, 
but  to  show  the  relation  which  cost  bears  to  the 
current  cost  of  operating,  so  that  the  reader  has 
only  to  ascertain  what  each  operating  expense 


*  Appendices  C  and  D. 


THINGS  AFFECTING  MAINTENANCE.  4#1 

amounts   to   upon   a  road   to  ascertain  approx- 
imately what  the  fixed  expense  is. 

The  maintenance  of  TI  railway  involves,  as  I 
have  pointed  out,  innumerable  things.  Some  I 
have  specified;  others  only  hinted  at.  It  in- 
volves, directly  and  indirectly,  the  books,  blanks, 
forms  and  stationery  of  a  company;  its  furni- 
ture, fixtures  and  appliances;  a  proper  system  of 
accounts;  the  telegraph;  responsible  methods  of 
handling  money;  the  purchase,  inspection,  care 
and  use  of  material;  the  proper  employment  of 
labor;  the  government  of  the  corporation;  the 
handling  of  traffic;  the  issuance  of  tariffs  and 
classifications;  the  movement  of  trains;  above 
all,  the  maintenance  of  the  track.  I  have  said 
much  about  the  latter.  The  theme  is  an  impor- 
tant one.  That  of  equipment  and  machinery  is 
nearly,  if  not  quite,  as  great.  This  subject,  how- 
ever, I  refer  to  in  the  book  devoted  to  Equip- 
ment, and  so  shall  not  discuss  it  here  further 
than  to  point  out  that  cost  is  dependent  here,  as 
elsewhere,  upon  the  care  and  foresight  exercised. 
Paint,  and  its  accessory,  varnish,  I  may  say  in  a 
word,  are  important  agents  in  this  connection. 
Material  of  this  nature  must  be  of  the  best  qual- 
ity, though  the  difference  in  cost  between  good 
and  bad  material  will  constantly  tempt  the  pur- 
chaser to  buy  the  latter.  In  the  preparation  of 
paints,  ingredients  require  to  be  carefully 
weighed  and  measured.  The  material  must  also 
be  pure  and  finely  ground.  The  colors  used  re- 
quire to  be  harmonious  and  permanent.  Work 

31    Vol.  3 


482     FINANCING,  CONSTRUCTING,  MAINTAINING. 

of  this  nature  cannot  be  hurried.  Thus,  varnish 
must  be  thoroughly  dry  and  hard  before  being 
exposed  to  the  weather,  and  in  order  to  secure 
this  ample  covered  space,  well  lighted,  ventilated 
and  heated,  is  required.  If  conditions  necessitate 
it,  artificial  means  of  drying  must  be  resorted  to. 
In  order  to  secure  the  best  results,  the  varnish, 
after  it  is  applied,  should  be  well  rubbed  in,  so  as 
to  close  the  pores.  In  England,  where  much  at- 
tention has  been  given  the  subject,  a  coat  of  raw 
linseed  oil,  from  which  all  the  fatty  material  has 
been  extracted,  is  applied  to  the  varnish.  In 
cleaning,  care  must  be  taken  to  avoid  harmful  or 
destructive  methods,  such  as  the  use  of  very  hot 
water  or  chemicals,  otherwise  the  varnish  on  a 
car  may  be  quickly  ruined  after  the  vehicle 
leaves  the  shop.  In  painting,  questions  of  color 
are  not,  as  would  seem  at  first  glance,  entirely 
matters  of  taste.  Advocates  of  light  colors  claim 
that  the  varnish  holds  better  in  such  cases,  that 
it  is  easier  to  clean,  wears  better,  and  does  not 
absorb  the  heat  as  much  as  dark  colored  paint. 
On  the  other  hand,  dark  colors  show  the  dirt  less 
and  require  less  material. 

In  concluding,  I  repeat  what  I  have  so  fre- 
quently had  occasion  to  call  attention  to,  namely, 
that  cost  of  maintaining  railroads  (and  operating 
them  as  well)  is  dependent  upon  the  nature, 
location  and  business  of  properties,  the  thorough- 
ness with  which  they  are  built  and  the  effective- 
ness and  foresight  exercised  in  keeping  them  in 
order. 


THINGS  AFFECTING  MAINTENANCE.  483 

I  have  not  attempted  to  elaborate  the  subject 
unduly,  but  to  point  out  its  more  salient  features 
and  the  line  of  inquiry  to  be  considered.  I  have 
sought  also,  indirectly,  to  make  clear  to  those 
who  impose  obligations  upon  railroads  the  neces- 
sity of  their  discriminating;  of  tempering  the 
wind  to  the  shorn  lamb;  of  remembering  that 
while  the  enforcement  of  arbitrary  enactments 
without  reference  to  local  conditions  will  simplify 
official  labors,  the  result  will  be  disastrous  to  the 
properties  concerned.  The  business  of  a  railroad, 
like  every  other  business,  is  a  matter  of  detail 
and  must  be  so  considered.  It  is  just  as  proper 
to  make  hats  of  a  uniform  size  for  all  men  as  to 
prescribe  fixed  conditions  for  railroads.  As  well 
might  the  expenses  of  the  government  be  col- 
lected by  a  uniform  charge  per  head  on  men, 
women  and  children,  without  reference  to  their 
ability  to  pay,  as  to  seek  to  make  one  railroad 
the  measure  of  other  railroads. 


APPENDIXES. 


(485) 


APPENDIX    A. 

METHODS    OF    CAPITALIZATION   IN    GREAT    BRITAIN. 

The  capital  of  the  railroads  of  Great  Britain  is  gener- 
ally represented  by  capital  stock  (called  share  capital), 
debentures  and  debenture  stock.  The  distinction  be- 
tween debentures  and  debenture  stock  is  this :  the 
former  mature  at  a  given  date ;  the  latter  is  perpetual. 
In  the  early  years  debentures  were  generally  used,  but 
of  late  they  have  been  very  largely  superseded  by  de- 
benture stock. 

Dividends  may  be  declared  at  pleasure  up  to  the  max- 
imum sum  fixed  by  the  government  on  capital  shares. 
They  may  be  paid  at  any  time,  or  may  be  wholly  omitted 
if  the  interests  of  the  company  require.  It  is  a  matter 
within  the  discretion  of  the  directors.  In  regard  to 
debentures,  interest  is  payable  at  a  particular  time,  the 
same  as  on  a  mortgage  bond. 

The  share  capital  is  generally  of  two  kinds — preferred 
and  ordinary,  the  former  being  entitled  to  a  dividend 
before  any  allotment  can  be  made  to  the  latter.  In 
some  cases  the  ordinary  stock  is  of  two  classes,  namely, 
preferred  ordinary  and  deferred  ordinary,  the  relation 
of  these  two  in  respect  to  dividends  being  the  same  as 
above  stated  in  respect  to  preferred  and  ordinary  stock. 
Often  there  are  found  special  stocks  which  are  known 
by  various  names  and  on  which  there  is  a  guaranteed 
dividend. 

In  order  that  a  company  may  issue  debentures  or  de- 
benture stock  the  assent  of  the  government  must  first  be 
obtained.  Debentures  are  generally  issued  to  the  extent 
of  one-third  of  the  authorized  share  capital,  but  before 

(487) 


488  APPENDIX  A. 

the  same  can  be  issued  at  least  fifty  per  cent,  of  the 
share  capital  must  be  paid  up.  Railway  companies  are, 
however,  allowed  to  issue  debentures  and  debenture 
stock  in  excess  of  the  amount  of  one-third  of  the  share 
capital  as  above  uef erred  to,  to  enable  them  to  secure 
funds  to  make  additions  to  their  plants  by  the  introduc- 
tion of  such  improvements  as  interlocking,  the  block 
system,  continuous  train  brakes  and  other  betterments 
chargeable  against  capital  account,  provided,  however, 
that  such  additions  are  first  approved  by  the  Board  of 
Trade.  In  each  case  specific  authorization  must  be 
given  by  the  Board  of  Trade  for  the  issuing  of  such 
debentures  or  debenture  stock. 

The  money  realized  from  the  issue  of  share  capital 
and  debentures  is  usually  received  by  a  company 
through  its  bank.  In  the  case  of  share  capital,  certifi- 
cates of  deposit  are  issued  by  the  bank  to  the  investor 
for  the  various  installments  paid  by  him,  which  receipts 
are  exchangeable  for  share  certificates,  a  separate  cer- 
tificate being  given  for  the  nominal  value  of  each  share. 
When  the  shares  have  been  fully  paid  up,  the  certificates 
are  convertible  into  stock,  a  certificate  being  given  for 
the  total  number  of  shares  each  investor  may  have,  or 
for  such  fractions  thereof  as  he  may  desire. 

Money  realized  from  the  issue  of  share  capital  and 
debentures  and  debenture  stock  is  applicable  only  for 
construction  and  work  authorized  by  the  act  of  incor- 
poration. 

Interest  warrants,  or  coupons,  covering  the  entire 
length  of  time  the  debentures  run,  are  issued  with  them. 
These  warrants  are  payable  semi-annually.  Debentures 
are  often  so  drawn  that  they  can  be  extended  beyond 
the  time  they  first  fall  due. 

In  reference  to  details  of  accounting,  the  warrants  for 
interest  on  debenture  stock  are  made  from  the  stock 
ledger,  the  amount  being  first  summarized  in  a  record 
kept  for  this  purpose,  on  the  dates  on  which  the  interest 
is  payable.  Warrants  for  the  payment  of  dividends  on 
the  share  capital  are  likewise  made  from  the  stock 
ledgers.  The  transfer  books,  or  ledgers,  for  both  these 


APPENDIX  A.  489 

classes  of  stock  are  closed  for  a  certain  period  preced- 
ing the  date  on  which  interest  or  dividends  are  payable. 
Transfers  made  in  such  stocks  during  the  period  the 
books  are  closed  are  made  after  they  are  reopened.  The 
warrants  for  the  interest  on  debenture  stock  and  for 
dividends  on  share  capital  are  posted  directly  to  the 
credit  of  holders  of  the  stock. 

The  records  connected  with  the  capital  of  the  rail- 
roads of  Great  Britain,  while  not  complicated,  are  more 
or  less  extensive.  They  give  a  clear  history  of  each 
transaction,  and  a  complete  statement  of  the  status  of 
the  various  classes  of  capital  at  all  times.  Thus,  the 
name,  address  and  description  of  each  holder,  amount 
of  same,  number  and  date  of  certificates,  date  when 
interest  or  dividends  are  payable,  when  paid,  in  what 
manner,  and  so  on. 

The  principal  records  kept  by  the  companies  in  con- 
nection with  their  various  classes  of  capital  may  be 
briefly  summarized  as  follows : 

Debenture  Sealing  Book. — Record  of  money  received 
by  the  company,  and  the  debentures  to  be  issued 
therefor. 

Register  of  Debentures. — Eecord  of  the  number,  date 
and  amount  of  the  debenture,  and  the  name  and  address 
of  holder;  also  particulars  of  any  transfers. 

Eecord  of  Debentures  Transferred. — Eecord  of  name 
and  address  of  party  from  whom  and  to  whom  trans- 
ferred ;  also  date  and  number  of  debenture.  This  reg- 
ister is  written  up  from  the  debenture  sealing  book  and 
the  record  of  debentures  transferred. 

Eecord  of  Debenture  Interest  Coupons — Eecord  of  in- 
terest falling  due  on  various  dates  on  each  debenture 
and  the  number  and  amount  of  each  installment. 

Eecord  of  Debentures  Falling  Due— Eecord  of  debent- 
ures falling  due,  number  of  debenture,  date  of  same, 
date  of  maturity  and  amount ;  also  through  what  bank 
paid  and  when,  or  if  not  paid,  disposition  made,  i.  e., 
whether  renewed  or  converted  into  debenture  stock. 

The  following  books  give  the  same  information  con- 
cerning debenture  stock  that  similar  records  do  for 


490  APPENDIX  A. 

debentures,  viz.,  debenture  stock  sealing  book ;  register 
of  debenture  stock  certificates ;  record  of  debenture 
stock  transferred. 

Debenture  Stock  Ledger — Record  of  name  and  address 
of  owner  and  amount  of  stock.  Entries  in  this  record 
are  posted  from  the  register  of  debenture  stock  and  the 
transfer  record. 

Debenture  Stock  Address  Book — This  is  an  index  and 
trial  balance  for  the  debenture  stock  ledger.  It  gives 
the  name,  address,  description  and  amount  of  stock  of 
each  holder,  and  the  folio  of  the  ledger  on  which  the 
account  is  to  be  found. 

Debenture  Stock  Interest  Register — This  record  gives 
the  name  of  each  holder  of  debenture  stock,  address, 
amount  of  stock,  period  for  which  interest  is  payable, 
rate,  amount  of  interest,  deduction  for  income  tax, 
net  amount  payable,  number  of  warrant  issued  and 
the  name  of  the  bank  it  is  paid  through.  It  is  written 
up  when  the  interest  is  due,  directly  from  the  stock 
ledger,  the  latter  being  closed  for  a  number  of  days  to 
facilitate  this. 

The  records  of  share  capital  are  practically  the  same 
as  those  for  debenture  stock.  Separate  records  are  kept 
for  each  of  the  various  classes  of  stock.  One  "  Address 
book,"  however,  answers  for  all  stocks,  the  name  and 
address  being  entered  in  the  middle  of  the  page,  on  the 
left  hand  of  which  are  separate  columns  for  the  folios  of 
the  respective  ledgers,  and  on  the  right  hand  columns 
for  the  amount  of  holdings  of  the  various  classes  of 
stock.  In  connection  with  the  issuing  of  new  shares,  an 
Allotment  book  is  kept  showing  the  number  and  par 
value  of  the  new  shares  allotted  to  each  holder.  This 
book  also  shows  what  portion,  if  any,  of  the  allotment 
is  renounced  by  the  holder  and  what  portion  taken  and 
the  payments  made  therefor.  In  connection  with  it  is 
kept  a  share  register  showing  the  amount  of  payments 
made  by  each  holder  and  the  number  of  such  shares 
transferred,  if  any,  before  the  same  were  converted  into 
stock. 


APPENDIX    B. 

RELATION     THE    VARIOUS     ITEMS     OF     TRACK    LABOR 
BEAR   TO   EACH   OTHER. 

Labor,  handling  rails 3.68  per  cent. 

Labor,  handling  ties 9.56 

Labor,  ballasting 12.31 

Labor,  ditching 4.78 

Labor,  freshet  repairs .92         " 

Labor,  watching  track 1.25         " 

Labor,  clearing  track  of  snow  and  ice 6.62         " 

Labor,  clearing  track  of  weeds  and  grass 7.35 

Labor,  general  repairs  to  track  (including  cut- 
ting rails) 53.53 


100.00 


RELATION  THAT  VARIOUS  ITEMS   OF    TRACK  EXPENSES 
BEAR    TO    TOTAL    TRACK    EXPENSES. 

Labor,  handling  rails 2.23  per  cent. 

Labor,  handling  ties 5.79 

Labor,  ballasting 7.35         " 

Labor,  ditching 2.89 

Labor,  freshet  repairs 45 

Labor,  watching  track 67 

Labor,  clearing  track  of  snow  and  ice 4.01 

Labor,  clearing  track  of  weeds  and  grass 4.45 

Labor,  general  repairs  of  track  (including  cut- 
ting of  rails) 32.52 

Rails,  ties,   miscellaneous  track  material  and 

tools  . .  39.64 


100.00 


(491) 


APPENDIX    C. 

RELATION    VARIOUS   CLASSES    OF   MAINTENANCE    BEAR 
TO   TOTAL   COST   OF    MAINTENANCE. 

Maintenance  of  track 44 . 25  per  cent. 

Maintenance  of  bridges  and  culverts 6.68          " 

Maintenance  of  buildings 6 . 98          " 

Maintenance  of  fences,  gates  and  crossings ...        2 . 46 

Maintenance  of  equipment 39.63 


100.00 


PROPORTION  THAT  THE  COST  OF  MAINTAINING  THE 
PROPERTY  OF  A  ROAD  BEARS  TO  ALL  OTHER  OPER- 
ATING EXPENSES. 

Maintenance  of  property 38.62  per  cent. 

Other  operating  expenses 61 .38         " 


100.00 


(492) 


APPENDIX  D. 


PERCENTAGE  OF  THE  TOTAL  COST  OF  OPERATING  DUE  TO 
MAINTENANCE  OF  ORGANIZATION  AND  THE  PREVENTION 
OF  THE  DESTRUCTION  OF  THE  PROPERTY  FROM  NATURAL 
CAUSES. 


NAME  OP  ACCOUNT. 

OPERATING     EXPENSE    THAT 
COMES    UNDER    THE    HEAD   OP 
FIXED  CHARGES. 

Renewal  of  rails  

2 

Renewal  of  ties  
Repairs  of  roadway  and  track  
Repairs  of  bridges,  culverts  and 
cattle  guards  

70 
57 

75 

Repairs  of  buildings               

70 

Repairs  of  fences,  road  crossings 

95 

8  5*\    In    the  case    of    a  f5% 

Repairs  of  passenger  cars  

q      1  railroad  not  in  opera-J  ^4 
J      ftion    the    expensed  Jt 

Telegraph    expenses   (mainte- 

10 

Agents         

50     ^ 

Clerks 

25          In  making  these  es- 

Train  force  

12  5  1  timates  the  wages  of 

Salaries  general  officers  and  their 
chief  assistants.         

f  the  force  retained  are 
50       reduced  fifty  per  cent. 

Law  expenses  
Oil,  Avaste  and  tallow  
Stationery  and  printing       

50    J 

Contingencies    (and     miscella- 

10 

FIXED   CHARGES  OTHER  THAN 
OPERATING. 
Taxes 

f    Except  where  taxes 
,  ftn  J  are  based  on  earnings, 

1  or  special  reductions 
|^cati  be  secured. 

Interest  on  funded  debt  
Sinking  fund  requirements  
Leasesi  contracts  and  agreements. 

100 
100 
100 

(493) 


APPENDIX  E. 


GAUGES    OP   RAILROADS    THAT    ARE    OR   HAVE    BEEN    IN    USE 
IN    DIFFERENT    COUNTRIES. 


GAUGE. 

GAUGE. 

GAUGE. 

GAUGE. 

Ft. 

In. 

Ft. 

In. 

Ft. 

In. 

Ft. 

In. 

4 
5 
5 
3 
4 
1  Me 
4 
1  Me 
4 
5 
IMe 
*4 
3 
5 
5 
4 

a 

4 
t4 
*5 
*6 
4 
4 
5 
4 
3 
*3 
5 
4 
3 
4 
t5 
4 
5 
5 
5 
4 
4 
8 
4 
*2 
t3 
4 
16 
4 

1* 

3 
6 
8K2 
tre 
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New  South  Wales  
Victoria  
South  Australia  
Queensland  
Austria  
Argentine  Republic  
Belgium  

Brazil                                 < 

British  India  

Cape  Colonies  

Ceylon  
Chili 

Denmark  

Egypt.  

Great  Britain  < 
Holland 

Hungary  
Ireland  
Italy 

Japan  
Mexico  
New  Zealand  
North  Germany  
Norway  
Nova  Scotia  

Peru  

Russia  
Spain  

Switzerland  
Tasmania  

Turkey  ) 
United  States  < 
Uruguay  Republic  

*  Gauges  in  use  at  present  time,  January, 

t  Standard  Narrow. 

j  Standard  Broad. 

§  Standard  of  Ireland. 

f  Mount  Washington. 

T  Sterling  Mountain. 

(494) 


APPENDIX  F. 


QUANTITY    OF     MATEKIAL     REQUIEED     TO    LAY    ONE     MILE    OP 
RAILROAD    TRACK    ON    THE    BASIS    NAMED. 


DESCRIPTION. 

WEIGHT 

PER 

YARD. 

TONS. 

NUMBER. 

SIZE. 

651bs. 

KBAVb 

352 

30  feet  in  length. 

72    " 

llSAtt 

352 

30    "    " 

80     " 

18SA1* 

352 

30    

.. 

tasflft 

352 

30    "    " 

90     " 

WljWa 

ma 

30    "     "        •» 

{8  inches  thick,  by  8  inches 

wide,  by  8  feet  long,  laid 

Ties  

3,017 

at  u  distance  of  21  inches 

from  center  to  center  of 

each  tie. 

Spikes  

12,068 

{5V£  inches  longand  ,»„  inch 
thick,   measured    under 
head. 

Base  Plates.... 

352 

Angle  Bars  .  . 

704 

Bolts  

1,408 

Nut  Locks  

1,408 

^Number  required  provid- 
ed a  plate  is  put  on  each 
|  end  of  every    tie.      They 

Tie  Plates  

0,034 

Iare  seldom  used  continu- 

ously, however,  but,  as  a 

rule,  only  on  bridges,  tres- 

tles and  curves. 

Ballast  to  the  depth  of  12  inches  under  the  ties,  with  a  surface  of  10  feet, 
requires  3,060  cubic  yards  for  one  mile  of  track. 


(495) 


INDEX. 


[NOTE. — As  many  of  the  subjects  treated  of  in  this  volume  are  also  treated 
of  in  other  volumes,  it  will  be  necessary  for  the  reader  to  refer  to  the  General 
Index,  in  Volume  XII..  in  order  to  ascertain  fully  what  is  said  on  each 
particular  subject.] 

PAGE 

Accidents 261,  293,  332,  430 

u         Railway — In  Early  Days 121 

Accounts,  Operating , 404 

Track 206,  284 

"  Treatment  of  Sinking  Funds  in 104 

Advice,  Legal— Cost  of 156 

Agreements 80 

Making 425 

Alabama,  Railway  Taxation  in 451 

Alignment 301 

Effect  of— on  Cost  of  Operation 393 

"          Imperfect 430 

Angle  Plates 335-340 

"      Splice  Bar,  A.  D.  1875— Illustration 293 

"     A.  D.  1879— Illustration 296 

"     A.  D.  1880— Illustration 298 

u     A.  D.  1885— Illustration 303 

Appliances,  Railway 168 

Track— Evolution  of  . 174, 199,  200 

America,  Capitalization  in 142 

of  Railways  in 69 

Construction  of  Railways  in   143,  149-151 

w  Tunnels  in 188,  189 

Cost  of  Operating  in 146 

Early  Railways  in 115-117 

First  Rail  Rolled  in— Baltimore  &  Ohio  Railroad — 

Illustration 233 

Low  Rates  in 146 

Railway  Taxation  in 435-453 

American  Plate  Girder  Overhead  Bridge-  Illustrations.. 379,  381 

"          Railway  Managers 141 

Arbitrators 98 

Ashbel  Welch  Rail,  A.  D.  1866— Illustrations 279,  280,  281 

Atchison,  Topeka  &  Santa  Fe  Railroad 361 

Atkinson,  Edward 35 

(496) 


INDEX.  497 

Atmospheric  Engines 120 

Austria,  Status  of  Railways  in 49,    50 

Use  of  Metal  Ties  in 378,  379 

Automatic  Safety  Switch  Stand — Illustration 336 

Awards 324,  325 

Axles,  Cost  of 403 

"      Defective . .  430 


Ballast 221,  222,  252,  253,  328 

Cinder 221 

Description  of— On  Various  Railways 183,  184 

Effect  of — On  Rails 328 

"    Ties 280-282 

Gravel 221 

"     —Chicago  &  North-Western  Railway— Illus- 
tration     353 

Influence  of — On  Cost  of  Maintenance 383 

"        Manner  of  Applying 183 

Materials  Used  for 182-184 

Object  of 182 

"        Purpose  of 2SO 

Sand 373 

Slag 221 

Stone 221 

Unloaders,  Steam 258 

Ballasting,  Imperfect 430 

Baltimore  &  Ohio  Railroad 148 

Banks,  Protection  of 254 

Barbed  Wire  Fence— Illustration 341 

Barlow's  "Saddle  Back"  Rail,  A.  D.  1856— Illustration 264 

Barry,  John  Wolfe 189 

Basis  of  Capitalization 28-40 

"     u  Railway  Taxation 433-457 

Battle  of  the  Gauges 192 

Belgian  State  Rail  ways 178,183 

Belgium,  Gauge  Used  in 194 

"         Government  Supervision  in 50 

Railway  Taxation  in 433,  444 

Use  of  Metal  Ties  in 377 

Berme 251 

Bethlehem  Iron  Company's  Rail,  "  Meat  Yard  "  Pattern— A. 

D.  1884— Illustration 302 

Bills,  Bank— Redemption  of 16 

Bimetallism 13 

Definition  of ••     H 

Birkenshaw's  Wrought-Iron  Rail,  A.  D.  1820— Illustration.. .  190 

Blenkinsop,  John I25 

Block  System 38 

Blocking 247,248,  332 

32    Vol.  3 


498  INDEX. 

PAGE 

Bogart,  John 296 

Bogie  Truck 145,  149 

K         "       Advantages  of 114 

Bolt,  Track— Hlustra tion 323 

Bolts 285 

*      Cost  of 403 

"     Fang 197,  198 

"      Interlocking 330 

Bonded  Debt— A  Basis  for  Taxation 446 

Bondholders 92,    94 

Waiving  Interests  by 462 

Bonds ." 65,    80 

•'      Coupon 96 

Details  of 92-100 

Duplication  of 75 

Income 93 

Interest  on 96 

"          "  —Disbursements  for 422 

Issue  of 65,    76 

u          "      "' —In  England 73 

"  the  United  States 73 

Mortgage 42,  G4,  86,  88.  158 

Payment  of 101 

"      Registered 97 

Sale  of    92 

Town 16 

Bonuses    74,  75 

"        Payment  of 78 

Books,  Stock— Closing 89-91 

Booth,  W.  H 151 

Boucherie  Process 359-362 

Boulton,  Samuel  S 358,  359 

Box  Rail,  A.  D.  1858— Illustration '274 

Bridge,  American  Plate    Girder  Overhead Illustrations. 

379,  381 

Bent  Trestle — Illustration ' 375 

"        Cantilever— Illustration 378 

Guard— Illustration 343 

Plate  Girder — Illustration 376 

Rail 200 

Steel  Truss— Illustration 372 

Bridges, 354 

Construction.and  Maintenance  of 296-299 

Cost  of  Keeping  in  Order 422.  423 

u  Maintenance  of 292 

"         Deterioration  of  , 292 

Duration  of 293 

Effect  of  Climate  on 294,  295 

"       "  Traffic  on 292-295 

Guard  Rails  for 223,  224 


INDEX.  499 

Bridges,  Influence  of— on  Cost  of  Maintenance 383,  389 

Life  of 294 

Poor — Expensiveness  of ....  401 

Protection  of 325-327 

Repairing 398 

Unsafe 430 

British  Guiana 15 

"        Mint 11 

Brunei,  Gauge  Adopted  by 191 

Brush,  Cutting 240 

"      Eemoving 285 

Buck,  L.  L 360 

Buildings,  Care  and  Maintenance  of 299,  300 

Cost  of  Keeping  in  Order 422,  423 

Deterioration  of 300 

Disbursements  for  Rent  of 422 

"          Influence  of — On  Cost  of  Maintenance 383 

Bulletins.  Posting 425 

Bull-headed  Rail,  A.  D.  1858—  Illustrations 270.  271,  273 

"     London    &  Northwestern  Railway — A.  D. 

1889— Illustration 309 

Bullion 10,    18 

Bumping  Post — Illustration 349 

Burnettizing  Process 359-362 


Camden  &  Amboy  Railroad 176 

Canada,  Transportation  of  Freight  in 125 

Cantilever  Bridge— Illustration 378 

Capital,  Amount  Invested  in  Railways 62 

"        Concentration  of 459 

"       Effect  of  a  Fluctuating  Currency  on 21,    22 

Foreign — Investments  Made  by 15,    16 

—Margin  Afforded  by 23 

"       Increase  of— Per  Mile  of  Road 30 

"       —Its  Relation  to  Net  Income 56 

"       Of  Railways 154 

Railway— Precautions  for  Investors 79-84 

Relation  of— to  Earnings 35,70,    71 

Secret  Power  of 460 

Stock 42,  80,  85-91,  158 

"     —a  Basis  for  Taxation 446 

"     Form  of  Certificate  of 87 

"     — Meaning  of  the  Term * 

Capitalists 

Capitalization 7-105 

Basis  of 30 

Criticism  of  Methods  of 28 

In  America 69,  142 

''England 65-71,85,    86 


500  INDEX. 

PAGE 

Capitalization  in  Europe 142 

Influences  Affecting 53-58 

Methods  of— in  Different  Countries 41-52 

"  —  "  Great  Britain '. . . .  .487-490 

Proper  Basis  of 86 

Care  of  Track 206-271 

Card,  James  T 364,  365 

Carhart,  Professor 274,  279 

Carlisle's Wrought-Iron  Bail,  A.  D.  1811— Illustration 188 

Cars,  Adaptability  of— to  Locomotives  and  Curves 114 

"     Freight 406 

"       —English 147 

"      Heating— In  Early  Days 120 

Lighting— In  Early  Days 120 

"     Passenger — English 147 

Carts,  Railway— The  First 110 

Cattle  Guard,  American — Illustration 342 

"     Guards 225.256 

"      Cost  of  Maintenance  of 292 

CedarTies 350 

Center  Bound  Track 217 

Central  Pacific  Railroad 163 

"       Railroad  of  New  Jersey 363 

Centrifugal  Force,  Counteraction  of,  on  Curved  Track. .  .187,  188 

Certificates  of  Stock,  Sale  of 90 

Chair,  Rail— Invention  of 177 

"    —The  First,  New-Castle-on-Tyne,  A.  D.    1797— 

Illustration 177 

Chairs,  Rail 332,  341 

'•    —Use  of 374 

Charges,  Fixed — Meaning  of  the  Term 413 

Terminal 408,  409 

Charter,  Cost  of 156 

"         Procurement  of 156 

Chestnut  Ties 350 

Chicago  &  North-Western  Railway 89, 183,  184 

Milwaukee  &  St.  Paul  Railway 88 

Rock  Island  &  Pacific  Railroad 3(iO 

Churchward,  James .'528,  332,  334,  338 

Cinder  Ballast 221,  222 

Civil  Engineer 131-133,  311,  312 

Clark,  Thomas  C 318 

Clearance  Posts 238 

Clerical  Force,  Skill  of 468,  469 

Climate,  Effect  of— on  Bridges 294,  295 

"      "      "    Property 477,478 

"      "      "    Rails 272-277 

"      "      "    Ties 282 

"      "      "    Track 287,288 

'•        Influence  of— on  Cost  of  Maintenance 383,  391 


INDEX.  501 

PAGE 

Coinage 10 

Free 11 

Colebrookdale. 176 

Collaterals 16 

Commissioners,  Government 46 

Common  Stock 65-69,    88 

Community,  Interest  of — in  Construction  Expenditures 166 

Competency,  Necessity  of— in  Railway  Service 415,  416 

Competition.  Advantagesof 147 

Compound  Rail,  New  York  Central  Railroad— A.  D.  1855 

—Illustrations 252,  253.  '2:") 

"      Troy  Union  Railroad— A.  D.  1855— Illus- 
trations   254,  257 

Connecticut  Railroad  Commission 164 

Connecting  Lines,  Operation  of — Where  the  Gauges  are  Dif- 
ferent   194,  195 

Construction *. 109-271 

Companies 30 

Cost  of— How  Lessened 152 

"     "  —Upon  What  Dependent 167 

Differences  in 137,  138 

Disbursements  for 156-166 

Elements  of 167-173 

Expenditures 137 

Capitalization  of 76 

Interest  of  the  Community  in.. .  166 

Extravagance  in 151 

Foremen 209 

Influences  Attending 56 

in  India 152 

Items  Included  in 137 

—Meaning  of  the  Term 137 

Methods  of 137-151 

"          "  Raising  Money  for 158 

of  Track 206-238 

Outlay  for— How  Governed 173 

Particulars  of 152-166 

Railway 123-136 

— Cost  of 35 

—Era  of 34 

—In  America 149-151 

— Influences  Governing 114,  115 

—In  the  United  States 129 

—Methods  of  Raising  Money  for i 

—Particulars  of 130 

—Principles  Governing 195,  19 

— Upon  What  Dependent 15 

Relation  of— to  Traffic 169 

Specifications  of  Cost  for 131 

TVaiu 209 


502  INDEX. 

PAGE 

Construction,  Trainmen. 209 

Uniformity  in 139 

Use  of  Stone  in *• 129 

"    "Wood  in 129 

Work,  Preliminary 130 

Constructive  Expenditures 418 

Contracts 80 

Cooley,  L.  E 133 

Co-operation,  Value  of — in  Railway  Management 386,  387 

Copper 8 

Coroners,  Fees  of 398 

Corporations,  Management  of — by  Private  Owners 57,    58 

Corrosion,  Prevention  of 368 

Cost,  Influences  Affecting 383-413 

"     Ratio  of — to  Gross  Earnings 144,  145 

"     Specifications  of — for  Construction 131 

Coupon,  Bond— Form  of 96 

Coupons 96 

Court  Costs 160,  161 

Credit,  Loss  of 25 

Credits 7 

Creosote,  Effect  of— on  Wood 352 

Use  of 358-360,  363,  364 

Value  of 358-361 

Creosoting,  Description  of 354,  355 

Critics.  Statements  of 73 

Cross-Overs,  Double 234,  235 

"          "      on  Curves 234 

"  Straight  Lines 234 

Cross  Tie,  Split  Half  "Log— Illustration 213 

"        "         "     Quarter  Log— Illustration 212 

"     Whole  Log,  Hewn  Both  Sides— Illustration 214 

"      Ties 179,  202 

Crossing.  Forty-five  Degree— Illustration 363 

Frogs 236,  237 

Crossings 235 

Cost  of  Keeping  in  Order 422,  423 

Road 256,  257 

"    —Effect  of,  on  Cost  of  Operation 394 

"     —Maintenance  of 300 

Street 222,  223 

Culvert,  Pipe— Illustration 368 

"        Stone  Arch— Illustration  369 

Culverts,  Construction  and  Maintenance  of , 296-299 

Cost  of  Keeping  in  Order 422,  423 

"      "  Maintenance  of 292 

Effect  of  Traffic  on -. , 293 

Influence  of — on  Cost  of  Maintenance 383,  389 

"         Insecure 430 

Protection  of  ..  325-327 


503 

PAGE 

Culverts,  Repairing 398 

Currency,  Debased— Its    Eft'ect    upon  Kail  ways  and  other 

Property 7-27 

—Its  Effect  Upon  Those  Who  Work  for 

Wages 7,    20 

Effect  of — on  Labor 19 

u        "  Wages 19 

Fluctuating— Its  Effect 7 

Sound— Its  Effect 7 

Curves,  Cross-overs  on 234 

Effect  of— on  Cost  of  Operation 393 

Elevation  of 218-220 

Switches  on  Outside  of 237 

"        Turnouts  on 234 

Cuts,  Cost  of  Keeping  in  Order 422,  423 

"      Rock 226 

"      Sodding 226 

Cypress  Ties 350 

Dakota,  Railway  Taxation  in 452 

Debenture  Stock 42,    95 

Debentures 65 

Debt,  Floating 80 

Funded 92 

Debts,  Railway — Guarantees  of 39 

Deeds,  Recorderof 96 

Delano,  F.  A 342 

Demurrage,  Charges  for 406,  407 

Department,  Roadway— Organization  of 258-260 

—Rules  Governing 260-271 

Derailing  Switches 237,  238 

Derrick,  Steam 258 

Deterioration  of  Rails 272-279 

—to  What  Due 287 

Devices,  Safety •  •  •  • 36-38 

Diamond  Switches 235,  236 

Directors,  Election  of 87 

English 140 

Disbursements,  for  Construction 156-166 

Railway— How  Influenced 388,  389 

Discrimination  in  Railway  Taxation 436,  444 

Discount 74,    76 

Ditches 251,  252 

Cost  of  Keeping  in  Order 422,  423 

Ditchers,  Steam 258 

Ditching 285 

Dividends 86,    87 

Declaration  of 65,  89,    90 

Fluctuations  in 41 


504  INDEX. 

PAGE 

Dividends,Paymentof 89,    90 

"  — In  America 42 

"          "       "  England 42 

Unearned — Payment  of 55 

Division  Headmasters 259 

Dorsey,  Edward  Bates 145,  149 

Double  Cross-Overs 234,235 

u       HeadedRail 200 

Drainage 225,  251-255,  285,  372 

"        Influence  of— On  Cost  of  Maintenance 383,  390,  391 

Slope 226 

u        Tunnel 226,  227 

Drill,  Track— Illustration 330 

Driving  Wheels,  Load  on 195 


Earnings,  Gross — A  Basis  for  Taxation 441-446 

"      —Ratio  of  Cost  to 144,  145 

Relation  of— To  Capital 35,  70,    71 

"          "       "  Expenses 57 

Eason,  Charles,  Jr 65 

East  Indian  Railway 178 

Eastern  Railway  of  France 178,  183 

Economists 14 

Education,  Effect  of— On  Railway  Officers 139 

Elasticity,  of  Track 179 

Elections,  Notices  of 425 

Electricity 347 

Elements  of  Construction 167-173 

Ellis,  William  F 314 

Embankments 129 

Cost  of  Keeping  in  Order 422,  423 

Slope  of 251 

Sodding 226 

Employes,at  Headquarters 418,  419 

Grievances  of 473 

Increase  in  Number  of 419^121 

Qualifications  Required  in 415,  416 

Relation  of— To  Owners 472-475 

Track— Rules  Governing 260-271 

Engineer,  Civil 131-133,  311,  312 

Engineers,  Assistant 259 

Engineers1  Stakes,  Care  of 244 

Engines,  Atmospheric 120 

"        Stationary,  for  Moving  Trains 120 

England,  Capitalization  of  Railways  in 65-71,  85,    86 

Cost  of  Operating  in 145,  146 

Gauge  Used  in 194 

Great  Northern  Railway  of 267-270 

"      Western  Railway  of 179, 191,  192 


INDEX. 


505 


England,  Maintenance  of  Track  in 307-309 

"        Opposition  to  Railways  in 117 

Use  of  Metal  Ties  in '.."..  376 

English  Directors 140 

Fish  Belly  Rail,  New  Jersey  Railroad— A.  D.  1832— 

Illustration 203 

"       Permanent  Way,  Section  of— Illustration '......  313 

Railways,  Cost  of 148 

Engraving 158 

Enterprise 79 

Equipment,  Adaptation  of,  to  Traffic 168,  169 

Comparison  of  English  and  American 147-149 

Cost  of  Keeping  in  Repair 478,  479 

Duration  of 424 

Expenses  of  Inadequate 427 

"         "    Superabundant 428 

Railway— of  Great  Britain 129 

Renewals  of 399 

Erie  Rail,  A.  D.  1857— Illustration 268 

Estimates,  of  Cost  of  Constructing  Railways 31 

Europe,  Capitalization  in 142 

u        Gauge  Used  in 194 

European  Railways,  Cost  of 163,164 

Evolution  of  the  Rail 126, 175-178,  204 

"  Track 174-205 

"  Transportation 109 

Railway 109-122 

•Expenditure,  Limit  of— for  Safety  Appliances 38 

Expenditures,  Construction 137 

— Capitalization  of 76 

— Interest  of  the  Community  in.  166 

Constructive 418 

Growth  of 413 

Organization 414 

Relation  of  Traffic  to 413-426 

Expenses,  Fixed — Meaning  of  the  Term 413 

"    Operating 413-426 

Influences  of  Traffic  on 419-421 

Notarial— Cost  of 156 

Relation  of— to  'Earnings 67 

Separation  of  Natural  and  Traffic 292 

Terminal 409-411 

Track— Chargeable  to  Traffic 285-292 

"    —Classification  of 287,  288 

"    —Relation  Various  Items  Bear  to  the  Total .  491 

Train 414,  415 

Experience,  Wisdom  Acquired  by 63,    6 

Experts,  Expenses  of H 

Extravagance,  Effect  of 124 

in  Construction ? 16J 


506  INDEX. 

PAfiE 

Facilities,  Effect  of— On  Cost  of  Operating 427-432 

Station 410,411 

Terminal— Cost  of -409 

Fang  Bolts 197,  198 

Fasten  ings,  Rail 197,198 

Track 328-334,  341 

Fence,  Barbed  Wire— Illustration • 341 

Fences 256,352 

Cost  of  Keeping  in  Order 422,  423 

Effect  of — On  Cost  of  Operation 392 

Maintenance  of 300 

"       Snow— Use  of 302-305 

Fernow,  B.  E 350,  370,  373-375 

"Fiat"  Money 17 

Fills 225 

Finances,  Management  of 7 

Findlay,  Colonel  George 139,  307 

Fires 271 

Damage  Caused  by 300 

First  Rail  Rolled  in  America,  Baltimore  &  Ohio  Railroad— 

Illustration 233 

Fish  Bolts 181 

"    Plates,  Introduction  of 181 

"      Stylesof 182 

Fixed  Charges— Meaning  of  the  Term 413 

Expenses— Meaning  of  the  Term 413 

"      Operating  Expenses 413-426 

Fixtures.  Wear  and  Tear  of 29Q 

Flanged  Wheels,  Introduction  of 177 

Flanges Ill 

Floating  Debt 80 

Force,  Centrifugal— Counteraction  of,  on  Curved  Track..  187,  188 

Clerical— Skill  of 468,  469 

Railway— at  Headquarters 418.  419 

Technical 470 

Train 470 

Foreclosure 87 

Foreclosures,  Mortgage 95 

Foreign  Investors .82-84 

Foremen,  Construction •. .209 

"         Gang 259 

Skill  of 468 

Track 310,  311 

Frame  Bent  Trestle  Bridge— Illustration 375 

Frames.  Cost  of 403 

France,  Eastern  Railway  of 178,  183 

Gauge  Used  in 194 

Government  Supervision  in , 46,    47 

Maintenance  of  Track  in 309,  310 

Status  of  Railways  in 46,    47 


IXDEX.  507 

France,  Treatment  of  Ties  in ...  355*356 

Use  of  Metal  Ties  in 376 

Freight  Cars,  English 147 

"        Collection  and  Delivery  of 406-408 

Loading  and  Unloading— Charges  for 406-408 

Rates — in  England 407 

Freshet  Repairs.. 285 

Freshets,  Damage  Caused  by 294 

Friction— Effect  of— On  Rails 274 

Frog — An  Early  Pattern — Illustration 192 

"    Guard  Rails 332,  233 

"    Movable— Slip  Switch— Illustration 367 

•'     Old  Portage  Railroad,  A.  D.  1835— Illuslr ation 210 

"    Staple  Iron  Used  as  a  Makeshift  for  a — Camden  &  Ain- 

boy  Railroad,  A.  D.  1831— Illustration 201 

"     Turn-Out— Illustration 366 

"    Wood's— New  Jersey,  A.  D.  1859— Illustration 276 

Frogs 228,  229 

Colliery  Railroads  of  England— A.  D.  1825 — Illustra- 
tions    193 

"       Crossing 236,  237 

Fuel,  Cost  of 396,424 

Expenditures  for 399 

for  Early  Locomotives 120 

u     Influence  of- On  Cost  of  Operation 394 

Funded  Debt 92 

Fund,  Reserve 461,  462 

Funds,  Sinking — Particulars  of 101-105 

Furniture,  Wear  and  Tear  of 299 


Gang,  for  Changing  Rails  on  Sunday 243 

Foremen ". 259 

Gangs,  Section 238 

Track  Laying 209 

Gates,  Cost  of  Keeping  in  Order 422,  423 

Gauge,  Adopted  in  India 193 

"       Measurement  of  194 

of  Primitive  Vehicles 190 

"  the  Line 190 

the  Narrowest 191,  192 

"    Standard 190,193,194 

"    Widest  Ever  lTsed 191 

"       Track— Illustration 331 

Gauges,  Battle  of  the 192 

"       of  Different  Countries 194 

Railway— That   Have    Been    in    Use   in    Different 

Countries 49* 

"       Uniformityin 193 

Gauging. . . . 211 


508  INDEX. 

Georgia,  Railway  Taxation 450,  451 

Germany,  Gauge  Used  in 194 

"          Government  Supervision  in 48,    49 

Status  of  Railways  in 48,    49 

Use  of  Metal  Ties  in 377,  378 

Gold 7,      8 

"    Ratio  of— to  Silver 12,    13 

Government  Commissioners 46 

Control,  Cost  of 57,    58 

French— Its  Attitude  Toward  Railways 46,    47 

Interference,  in  the  United  States 45 

Ownership 45 

Stamp 10 

Weak— Its  Effect 7 

Governments,  Obligations  of 86 

Policy  of 45 

Grades,  Effect  of— on  Cost  of  Operation 392 

Grand  Trunk  Railway  of  Canada 88 

Grass,  Cutting 240 

"     Removing 285 

Gravel  Ballast 221,  222 

Great  Britain,  Government  Supervision  in 61 

Methods  of  Capitalization  in 487-490 

"       Railway  Equipment  of 129 

Managers  in 148 

Taxation  in 434,  435 

Indian  Peninsular  Railway 178 

"     Northern  Railway  of  England — , 267 

"  Ireland 178,  183 

"     Western  Railway  of  England 179, 191,  192 

Gresham,  Sir  Thomas 11 

Gross  Earnings — a  Basis  for  Taxation 441-446 

Guaranties 422 

"         of  Railway  Debts 39 

Guard,  Bridge— Illustration 343 

"      Rails,  for  Bridges 223,  224 

"      Frog .....232,233 

"      Cattle— American— Illustration 342 

Guards,  Cattle 225,  256 

"    — Cost  of  Maintenance  of 292 

Guiana,  British 15 


Hadley,  Arthur  T 135 

Harvey,  C.  C 449 

Headquarters,  Railway  Force  at 418,  419 

Hedges 352 

Hemlock  Ties 350 

Hetton  Rail,  1824— Hlus tration 191 


INDEX.  509 

Hill,  Sir  Rowland 154,P160 

Holland,  Status  of  Railways  in 50 

Use  of  Metal  Ties  in 377 

Horses,  Use  of— on  Railways 126 

Howard,  James  E 331 

Howe  Truss  Bridge  Span — Illustration 373 

Hungary,  Use  of  Metal  Ties  in 378,  379 


Ice,  Clearing  Track  of 301 

Idleness,  Effect  of— on  Machinery 424 

Illinois,  Railway  Taxation  in 440 

Implements,  Wear  and  Tear  of 299 

Improvements 140,  141 

Means  for  Developing  23 

"        "    Extending 23 

Income,  Use  of— to  Strengthen  Properties 74 

India,  Construction  in 152 

Gauge  Adopted  in 193 

Labor  in 152 

Railways  in 153 

Transportation  of  Freight  in 125 

Influences  Affecting  Capitalization 53-58 

Injuries,  Disbursements  for 398 

Income  Bonds 92 

Net— Its  Relation  to  Capital 56 

Insurance 475,  476 

LookingAfter 425 

Inspectors,  Pump 259 

Timber 259 

Interest,  Abnormal  Rates  of 28 

"        on  Bonds 96,    97 

"        Payment  of 96,    97 

Rate  of 16 

Waiving— By  Bondholders 462 

Interlocking  Bolts .' 330 

Interstate  Traffic 46 

Investigation,  Need  of— In  Investing 79-84 

Investments 15,     16 

Safe 57 

Investors,  Care  Exercised  by. 60 

"  Foreign 82-84 

Precautions  for 79-84 

Representatives  of 82-84 

Iowa,  Railway  Taxation  in 439 

Ireland,  Gauge  Used  in 1* 

Great  Northern  Railway  of .  -  .178,  183 

Iron „ 

"    Railways,  Kinds  of HI 


510  INDEX. 

PAGE 

Italy,  Gauge  Used  in 194 

"     Status  of  Railways  in 50 

"     Use  of  Metal  Ties  in * , 379 


Jack,  Track— Illustration 332 

Japan,  Comparative  Value  of  Silver  and  Gold  in 12 

Jeans,  J.  S 35,  143 

Jessop,  William— Rail  Introduced  by 177 

Jessop's  Cast  Iron  Fish-bellied   Rail— A.  D.  1789— Illustra- 
tion   177 

Joint  Block,  Wooden— New     Jersey  Railroad,  A.   D.  1860 

— Illustration 278 

"      Chair  and  Wedge,  Old  Portage  Railroad— A.  D.  1832 

— Illustration 204 

"      Fixture  Used   on  Western  Railroads— A.  D.  1869— Il- 
lustration   285 

u      Rail— A.  D.  1888-— Illustration 307 

Joints 301 

Broken 220,221 

Even 220,  221 

Rail 1 334-347 

"    — Effect  of  Depressions  in 341 

Supported 215,  216 

Suspended 215,  216 


Kentucky,  Railway  Taxation  in 449 

Knowledge,  Value  of 467,  468 

Kyanizing  Process 359-362 


Labor,  Centralization  of 459 

Cost  of— in  Repairs  and  Renewals  of   Roadway  and 

Track 284 

Effect  of  a  Debased  Currency  on 21 

Effect  of  Currency  on 19 

Influence  of — on  Cost  of  Maintenance 383 

In  India 152 

Organization  of 459 

Outlay  for 399 

Track— Relation  Various  Items  Bear  to  Each  Other. .  491 

Laborers,  Skilled 468 

Lancashire  &  Yorkshire  Railway 183 

Land,  Acquisition  of— By  Railways 160 

Latrobe's  Compound  Rail,  Baltimore  &  Ohio  Railroad— A.  D. 

1841—  Illustration , 231 

Laws  Regulating  the  Issuance  of  Stock 78 


INDEX.  511 


PAGE 


Lawyers,  Employment  of 425 

Lead 8 

Leases 80 

"       Details  of 92-100 

LeCanivs  Tram  Bail,  Wales,  A.  D.  1801— Illustration 180 

Ledger,  Stock 89 

Legal  Advice,  Cost  of 156 

'p     Services,  Expenditures  for 398 

Legislation,  Railway .• 136 

Lessees,  Obligations  of 98,    99 

Lessors,  Duties  of 99,  100 

Level,  Track— Illustration 329 

"Line of  Way" 190 

Liverpool  &  Manchester  Railway 125,  181 

Loans,  Negotiation  of 83,    84 

Location,  Influence  of — On  Railway  Disbursements 388,  389 

Locomotive,  Hauling  Power  of 195 

Idea  of— Origin  of 125 

Introduction  of — Gauge  Adopted 193 

Pneumatic 120 

Locomotives,  Adaptability  of— To  Gradients  and  Curves 114 

Cost  of  Keeping  in  Order 430,  431 

Early— Fuel  for 120 

Longitudinal  Ties 179,  201,  202 

"      Use  of 318-320 

Losh  &  Stephenson's  Edge  Rail,  Stockton  &  Darlington  Rail- 
road—A. D.  1816— Illustration 189 

Losses,  From  Unstable  Currency 25 

Louisiana,  Railway  Taxation  in 452 

Lubricants,  Inferior— Effect  of  Use  of 402,  403 


Machinery,  Cost  of  Keeping  in  Order 424,  430,  431 

Effect  of  Idleness  on 424 

Renewals  of 399 

Wear  and  Tear  of 299 

Mail,  Delivery  of 414 

Maintenance 272-483 

Cost  of ">8,  145,  423 

"     "  —Effect  of  Traffic  on 475 

"     «  —Upon  What  Dependent 383-412,  482 

Effect  of  the  Rigid  Wheel  Base  on 148 

Fixed  Expenses  of 466 

Influences  Affecting 458-483 

of  Bridges,  Cost  of •  292 

"  Cattle  Guards,  Cost  of 292 

"  Culverts,  Cost  of 292 

"  Ties 280-284 

"  Track. . .  20C,  238-300 


512 


INDEX. 


PAGE 

Maintenance — Meaning  of  the  Term 388 

Railway — Things  Involved  in 481,  482 

Relation  of  Various  Classes  of— To  Total  Cost  of.  492 

Management,  Discretion  of 414 

Effect  of— on  Rates 57,    58 

Improvident 43 

Methods  of 57 

"         "  — in  Different  Countries 41-52 

Railway.. 249,  250,  405 

Managers,  Functions  of 418 

^        Need  of 418 

Railway 429 

"        —American 141 

—in  Great  Britain 148 

"         —Their  Incentive  to  Foster  Business 425,  426 

Wages  of 418 

Mansfield,  Gauge  Adopted  by ; 192 

Market,  of  the  World 24 

Maryland,  Railway  Taxation  in 452 

Masonry,  Arched 1 29 

Material,  Cost  of 385,  396,  397 

"  Substituting  Old  for  New 396 

Influence  of— on  Cost  of  Maintenance 383 

Quantity  of— Required  to  Lay  One  Mile  of  Track..  495 

Track— Preparing  for  Sunday  Work 241 

"         Used  in  Repairs  and  Renewals  of  Roadway  and 

Track 284,  285 

Medicines,  Expenditures  for 398 

Medium,  Circulating 7,  8,    14 

"         — Paper  as 16 

Metal,  Deterioration  of— from  Oxidation 273 

u      upot,,  Tie    Midland  Railway  of  India— A.   D.  1889— 

Illustration 311 

"      Ties 203 

Ties 202-204,  3-18,  365-369 

Advantages  of 366 

Construction  of 367,  368 

Corrosion  of— How  Prevented 368 

Cost  of 369 

Durability  of 378 

Fastenings  for 368 

Requirements  of 381,  382 

Use  of 177, 365-369 

—in  Austria 378,  379 

"  Belgium 377 

"  England 376 

"  France ..  376 

"  Germany 377,  378 

"Holland 377 

"  Hungary 378,  379 


INDEX.  513 

Metal  Ties,  Use  of— in  Italy .  ."79 

"  Portugal .379 

"  Spain 379 

Switzerland 379 

Track,  A.  D.  1889— Illustrations 314-319 

Advantages  of 380 

"        Midland  Railway,  A.  D.  1889— Illustration 312 

"        Queensland,  A.  D.  18b9— Illustration 312 

Metals.  Use  of— by  Railways 320-322 

Metallic  Salts,  Use  of 352 

Metallographists 14 

Method  of  Capitalization 28-40 

"  Construction 137-161 

Michigan,  Railway  Taxation  in 436,  438 

Mileage,  Railway— Growth  of 42 

Mineral  Salts,  Use  of 361 

Minnesota,  Railway  Taxation  in 439 

Mint,  British 11 

Mississippi,  Railway  Taxation  in 451,  456 

Money,  as  Property 8 

Free  Circulation  of 11 

"    Coinage  of 11 

"  Fiat " 17 

Influences  Affecting 8,      9 

MaterialsUsed  for 7,      8 

of  Savages 9 

Origin  of  the  Word..   .• 9,    10 

Paper 11 

Plentifulness  of 28,    43 

Purchasing  Power  of 9 

Requirements  of 8 

Scarcity  of 28 

the  Standard 8 

Transportation  of— in  Early  Days 119 

Weighing 10 

—What  Constitutes  it 7 

"      is  Meant  by 7 

Mo     ague,  S.  S 163 

Mo    ison,  Andrew. 207 

Mo    gage  Bonds 42,64,80,88,92-100,  158 

Foreclosures 95 

Trustees 94 

Mortgages 92-100,  103 

Recording 96 

Movable  Points 236,  237 


Narrow  Gauge  Roads H3 

Nation,  Effect  of  a  Debased  Currency  on  a 21 

Newcastle-on-Tyne 110,  194 

33    Vol.  3 


514  INDEX. 

PAGE 

Notarial  Expenses,  Cost  of 156 

Notices,  Posting 425 

Nurses,  Expenditures  for 398 

Nuts 285 


Oak  Ties 350 

Offices,  Filling  Petty 417 

Officers,  Railway— Effect  of  Education  on 139 

Officials,  Minor— Wages  of 418 

Skill  of 468 

"        Supervisory— Qualifications  Required  in 416,  417 

Ohio,  Railway  Taxation  in 449 

Oil,  Wood  Creosote 358 

Operating,  Accounts 404 

Cost  of 35, 36,  44,  58,  404 

«     "  —Affected  by  Facilities 427-432 

"      "  — How  Lessened 152 

"      "  —In  America 146 

"  England 145,  146 

Differences  in  Cost  of— In  Different  Countries.. .  146 

Expenses,  Fixed 413-426 

Percentage  of  Total  Cost  of — Due  to  Maintenance 
of  Organization  and  the  Prevention  of  Destruc- 
tion of  Property  from  Natural  Causes 493 

Operation,  Cost  of— Effect  on  Rates 466 

"      u  —Upon  what  Dependent 383-412 

"          Influence  of  Facilities  on 427-432 

Organization,  Changes  in  Personnel  of 416 

Cost  of 468 

u      "  Maintaining 464 

Expenditures 414 

Expenses  of 425 

Fixed  Expenses  of : 469,  470 

of  Roadway  Department 258-260 

Preservation  of  Nucleus  of 464 

Organizations,  Elasticity  of .420,  421 

Origin  of  Railways 110 

Owners 34,38,    45 

Characteristics  of 79 

Conservatism  of 77 

Grievances  of 472-475 

"         Private — Management  of  Corporations  by 57,    58 

Railway 60,61,63,429 

Relation  of — To  Employes 472-475 

—Their  Incentive  to  Foster  Business 425,  426 

Ownership,  Government 45 

"  —In  France 46,    47 

Oxidation,  Effect  of 272-279 

Prevention  of 273,  274 


INDEX.  51 5 

PAGE 

Paints 481,  482 

Paper,  as  Circulating  Medium 16 

Money H 

Promises,  Issuance  of 17 

Paris,  Lyons  &  Mediterranean  Railway 362,  364 

Particulars  of  Construction 152-166 

Passenger  Cars,  English ; 147 

Traffic 113 

Pasteur 356 

Pear-Headed  Kail,  A.  D.  1853— Illustration 242 

"      Buffalo,  Corning  &  New  York  Railroad, 

A.  D.  1855— Illustration 251 

"      New  York  Central  Railroad,  A.  D.  1855— 

Illustration 248 

"     New  York  &  Erie  Railroad,  A.  D.  1855— 

Illustration 249 

"          "          "      Saratoga  &  Schenectady  Railroad,  A.  D. 

1855 — Illustration , 250 

Pennsylvania  Railroad 183 

Permanent  Way 314-317 

"    English— Section  of— Illustration 313 

— Meaning  of  the  Term 130 

"    Primary  Purpose  of 110 

"     Strength  of : 195 

"    —What  It  Represents 189,  190 

Piling 129 

Pine  Ties 350 

Pipe  Culvert— Illustration 368 

Plates 301 

"     Tie 213 

"  —Use  of 332,333,  352 

Platforms,  Influence  of — On  Cost  of  Maintenance 383 

Plows,  Snow— Use  of 302-305 

Pneumatic  Locomotive 120 

Points,  Movable 236,237 

Poles,  Telegraph 354 

Population,  Effect  of— On  Cost  of  Operation 394 

Portugal,  Comparative  Value  of  Silver  and  Gold  in 13 

Use  of  Metal  Ties  in 379 

Post,  Bumping — Illustration 349 

Post,J.W 327 

Posts,  Clearance 238 

"Pot"  Tie,  Metal— Midland  Railway  of  India— A.  D.  1889— 

Illustration 311 

"       Ties,Metal 203 

Power,  Hauling— Of  a  Locomotive 195 

Preference  Shares 88 

Preferred  Stock 65-69,    88 

Preliminary  Construction  Work 130 


516  INDEX. 

Premium,  Paid  for  Risk .     75 

"          System 249 

Premiums , 301 

Payment  of 324,  325 

Preservatives,  Wood 349-375 

Printing 158 

Promises,  Paper— Issuance  of 17 

Property,  Damages  to— Liability  of  State  for 463 

"         Disintegration  of — From  Natural  Causes 466 

Effect  of  Climate  on 477,  478 

Influence  of — On  Cost  of  Maintenance 383 

Kinds  of 109 

Losses  and  Damages  to 398 

Money  as 8 

Origin  and  Growth  of 109 

Ownership  of 475 

Productiveness  of '. 28 

Railway— Characteristics  of 109 

44        — Deterioration  of 460 

"        —Effect  of  Idleness  on 460 

—Guarding 462,  463 

"        — How  Strengthened 71 

—Its  Similarity  to  other  Property 462 

—Limitations  of 110 

—Maintenance  of 301-347 

—Natural  Decay  of 467,  468 

—Privileges  of 109 

—Preservation  of 463 

— Productiveness  of 41 

—Rights  of 109 

—Safety  of ...  463 

Real  and  Personal— A  Basis  for  Taxation 446,  447 

Status  of— How  Fixed 169 

Warfare  on 73 

Proprietors,  Grievances  of 472-475 

Relation  of— to  Employes 472-475 

Prosperity '. 10 

Proxies,  Giving 81 

Pump  Inspectors 259 


Bail,  Action  of— on  Tie— Illustration 321 

"     and  Joint  Tongue, Laid  on  Camden  &  Amboy  Railroad, 

A.  D.  1831— Illustration 199 

"      Ashbel  Welch— A.  D.  1866— Illustrations 279,  280,  281 

44      Barlow's  "Saddle  Back"— A.  D.  1856— Illustration 264 

"      Birkenshaw's  Wrought  Iron — A.  D.  1820— Illustration.  190 
44      Boston  &  Worcester  Railroad — A.   D.  1850— Illustra- 
tion... ..  238 


INDEX.  517 

FAGB 

Rail,  Box— A.  D.  1855— Illustration 258 

"         "   —A.  D.  1858— Illustration 374 

"      Bridge 200 

Buffalo,  Corning  &  New  York  Railroad— A.  D.  1855— 

Illustration 251 

"     Bull-headed—London  &  Northwestern  Railway — A.  D. 

1889— Illustration 309 

"     Camden  &  Amboy  Railroad— A.  D.  1848— Illustration. .  237 

Carlisle's  Wrought  Iron— A.  D.  1811— Illustration 188 

"     Chair,  Invention  of 177 

"          "      the    First— New-Castle-on-Tyne,    A.  D.  1797 — 

Illustration 177 

"     Chairs 332,  341 

"      Use  of 374 

"      Compound— New  York  Central  Railroad,  A.  D.  1855— 

—Illustrations 252,  253,  255 

"          —Troy  Union  Railroad,  A.  D.  1855— Illus- 
trations   254,  257 

"      Designed  by  Robert    L.    Stevens— A.   D.  1830— Illus- 
tration   197 

u      DoubleHeaded 200 

"      Early  Methods  of  Strengthening  the 180-182 

"      English  Fish-Belly—New  Jersey  Railroad,  A.  D.  1832— 

Illustration 203 

"      Erie— A.  D.  1 857— Illustration 268 

"      Evolution  of  the 126, 175-178,  204 

"     Fastenings 197,  198 

"     First  Rolled  in  America— Baltimore  &  Ohio  Railroad 

—Illustration 233 

Flat-bottomed 200 

u      Frog,  Wood's— New  Jersey— A.  D.  1859— Illustration.  276 

"      Great  Western  Railway— A.  D.  1857— Illustration 265 

Hetton— 1824— Illustration 191 

"      Importance  of  126,  127 

"      Jessop's  Cast  Iron  Fish-bellied— A.  D.  1789— Illustra. 

tion 177 

"      Joint,  A.  D.  1888— Illustration 307 

"       Reinforced— Illustration 338 

"       Showing  Action  of  the  Wheel  on— Illustration..  339 

"      Joints 334-347 

"        Effect  of  Depressions  in ... 341 

u     Latrobe's  Compound — Baltimore  &  Ohio  Railroad — A. 

D.  1841— Illustra  tion 231 

"      LeCann's  Tram— Wales,  A.  D.  1801— Illustration 180 

"      Lehigh  Valley  Railroad— A.  D.  1890— Illustration 326 

Long  Island  Railroad— A.  D.  1855— Illustration 247 

Losh  &  Stephenson's— Stockton  &  Darliagton  Railroad 

—A.  D.  1816— Illustration 189 

"      "  Meat  Yard  "  Pattern— A.  D.  1884— Illustration 302 

"'     New  York  Central  Railroad— A.  D.  1855— Illustration.  248 


518  INDEX. 

Rail,  New  York  &  Erie  Railroad— A.  D.  1855—  Illustration ,. .  249 

"     Pear-headed— A.  D.  1853— Illustration 242 

"      Pennsylvania  Railroad— A.  D.  1857— Illustration 266 

"      Proposed  by  D.  Chanute— A.  D.  1874— Illustration 290 

"      Rectangular— A.  D.  1838— Illustration 224 

"      Saratoga  &  Schenectady  Railroad — A.  D.  1855— Illus- 
tration   250 

"      Standard— A.  D.  1868— Illustrations 282,  284 

—A.  D.  1870— Illustrations 286,  287,  288,  289 

—A.  D.  1875— Illustrations 291,  292,  293 

—A.  D.  1879— Illustration 294,  297 

—A.  D.  1880— Illus trations 298.  299 

—A.  D.  1881— Illustration 300 

—A.  D.  1885— Illustrations 303 

"        —A.  D.  1886— Illustration 305 

"        —A.  D.  1887— Illustration 306 

"        —Of  Belgium  Government— A.  D.  1889— Illus. 

tration . .  310 

—A.  D.  1890— Ulust rations 323,  324,  325 

— A.  D.  1897— Illustrations 345,346 

"      "Stevens" 200 

"        —A.  D.  1854 — Illustration 244 

—France,  A.  D.  1888— Illustration 308 

—Great  Western  Railway  of  England— A.  D. 

1858— Illustration 275 

—Supported  by  Cast-iron  Chair— A.  D.  1837 

—Illustration 220 

— Vicksburg  &  Jackson  Railroad— A.  D.  1 841 

—Illustration 227 

—Western  Railway  of  France— A.  D.  1855— 

Illustration 259 

"      Stephenson's  Fish-belly— Manchester  &  Liverpool  Rail- 
way—A. D.  1829— Illustration ;  .   196 

"      Strap— Albany  &  Schenectady  Railroad — A.  D.  1837— 

Illustration 223 

"     —Baltimore  &  Ohio  Railroad— A.  D.  1833— Illus- 
tration   208 

"     the  First  Iron 176 

u      Tram— Surrey  Railway,  A.  D.  1803— Illustration 183 

"      Upon  Which   Trevithick's  First  Locomotive  Ran— Il- 
lustration   186 

u      "Vignoles" 200 

"      AVoodhouse's  Patent  Concave— for  Wagons,  A.  D.  1803. 

—Illustration 184 

"      Wyatt's  Hexagonal— North  Wales,  A.  D.  1802— Illus- 
tration    181 

Rails „ . .  301 

"      Cast 176 

"      Changing 241 

*      Cost  of  Keeping  in  Order 423 


519 

Rails,  Creeping  of : 333,  •&$ 

Curving 214,215 

Cutting  of  Ties  by 332 

Deterioration  of 272-279,  467 

Differences  in 127 

Durability  of 334,  398 

Duration  of 424 

Early  Methods  of  Laying 190 

Effect  of  Ballast  on .328 

"  Climate  on 272-277,  467 

"  Friction  of  Wheels  on 274 

"  Passing  Trains  on 329,  331 

;i  Rust  on 277,  278 

"  Speed  on 276 

"  Traffic  on 278 

"       "  Wheels  on 201 

"       Filing 242,  243 

Frog  Guard 232,  233 

Gang  for  Changing— On  Sunday 243 

Guard— For  Bridges  . . .' 223,  224 

"      Hardness  of— Its  Effect  on  Wear 322,323 

Inferior— Use  of 398,  399 

Influence  of — On  Cost  of  Maintenance 383 

"      Inspecting 214 

"      Jointing 243 

"      Laying 196, 197.  332,  333 

"      Lifeof .278,279 

"      Loose 331 

"      Maintenance  of 277,  278 

"      Rolled 176 

Securing  to  Ties 331,332 

"      Spiking 332 

Standard— Adoption  of 127 

"Strap"..   176 

"      Supports  for 179 

"      theFirst 110 

Uniform  Patterns  of 127 

"      Unloading 241,242 

rt      Unused— Life  of 275-277 

u      Used— Life  of 275-277 

"      WeakSpotsin 341 

"      Weight  of 178 

u       Worn 430 

"      Wooden 175,  176 

"      Wrought-Iron 178,  179 

Railroad,  Atchison,  Topeka  &  Santa  Fe 361 

Baltimore  &  Ohio 148 

Camden  &  Ambov 176 

Central— of  New  Jersey. .     363 

"        Central  Pacific. ..  163 


520  INDEX. 

PAGE 

Railroad,  Chicago,  Bock  Island  &  Pacific 360 

"         Pennsylvania 183 

Railway  Accidents— in  Early  Days 121 

"         A.  D.  1800 Illustration 179 

"         Administration,  Cure  of  Faults  in 33 

Bonds,  Details  of 92-100 

Capital,  Precautions  to  investors  in 79-84 

Capitalization 28-105 

Carts,  the  First 110 

Central  Idea  of  a 174,  175 

Chicago  &  Northwestern 89, 183,  184 

Chicago,  Milwaukee  &  St.  Paul 88 

Construction  (See  also  •'  Construction  ") 123-136 

Cost  of 35 

Era  of 34 

Disbursements  for 156-166 

Influences  Attending 56 

"         Governing 114,  115 

Particulars  of , 130 

Principles  Governing 195,  196 

Upon  What  Dependent 138" 

Development— How  Influenced 128 

Disbursements — How  Influenced 388,  389 

East  Indian 178 

Eastern— Of  France 178,  183 

Equipment,  of  Great  Britain 129 

Evolution 109-122 

Grand  Trunk— of  Canada 88 

Great  Indian  Peninsular 178 

"      Northern— Of  England 267-270 

u    Ireland 178,  183 

Western— Of  England 179, 191,  192 

Lancashire  &  Yorkshire 183 

Leases,  Details  of 92-100 

Legislation 136 

Liverpool  &  Manchester 125,  181 

Maintenance,  Things. Involved  in 481,  482 

Managers 429 

"          American 141 

in  Great  Britain 148 

Men  as  Writers 32,    72 

Mileage,  Growth  of 42 

Officers,  Effect  of  Education  on 139 

Owners 429 

Paris,  Lyons  &  Mediterranean 362,  364 

Property,  Characteristics  of 109 

"        Deterioration  of 460 

"        Effect  of  Idleness  on 460 

Guarding 462,  463 

"       —How  Strengthened 71 


INDEX.  521 

Railway  Property,  Limitations  of 110 

Maintenance  of 301-347 

Natural  Decay  of  467,  468 

Preservation  of 463 

Privileges  of 109 

Productiveness  of 41 

Rights  of 109 

Safety  of 463 

Similarity  of— to  Other  Property 462 

Securities 53-55 

in  America 72,    73 

Fluctuations  in 42 

Precautions  to  Investors  in 79-84 

Purchase  of 64 

Single  Rail Ill,  112 

Southern  Pacific 359 

Suggestion  of  the  Name 178 

44         Taxation % 433-457 

The  First 110,  111 

Track,  First  Use  of 126 

Union  Pacific 361 

Railways,  Acquisition  of  Land  by 160 

Adaptability  and  Skill  of 74 

Additions  to 76,    77 

Adjustability  of 128 

Agents  of 172,  173 

American— Track  of 185 

Appliances  of 168 

Authorizations  of 45 

44         Bankrupt 31 

"         Belgian 178,183 

"          Benefits  of— To  Localities 154,  155 

44         Building  of— How  Affected 7 

"       — Without  Reference  to  Needs 61 

—ByWhomBuilt 30 

Capitalof 154 

44        Invested  in 62 

Capitalization  of : . .  .28-105 

44  —In  America 69 

44       "    England 65-71 

u  —Influences  Affecting 53-58 

Changes  in 384 

Cheap 169,  170 

Closing 458-462 

Concentration  of • 62 

Consolidation  of 62 

44          Construction  of 113,  114 

44  —In  America 143, 149-151 

Contest  of— With  Water  Courses 134 

'4         Cost  of— Estimates  of 31 


522 


INDEX. 


PAGE 

Railways,  Cost  of— in  America 45 

"  England 44 

"      "      "  Europe 45 

"     "  —How  Affected 30 

"     "  —Per  Mile 163 

Development  of— in  America 383,  384 

Difference  Between  American  and  European 184 

"          English  and  American 65,  66 

Early— Construction  of. .. 55 

"       Development  of — to  What  Due 134 

"       History  of 32, 136,  296 

"       —in  America 115-117,  188 

—Operation  of 117-121 

Edge Ill 

Effect  of  Remunerative 142 

''      "    Un remunerative 142 

English— Cost  of 148 

tt     — Safety  Devices  of 36,    37 

European — Cost  of 163,  164 

First  Use  of 178 

Gauges  of— That  Have  Been  in  Use  In  Different 

Countries 494 

Government  Control  of— in  the  United  States 46 

Growth  of 76,    77 

Improvement  in 164,  165 

in  India 153 

Introduction  of — Effect  upon  Values 154 

"  "      "        on  Transportation 112,  113 

Iron— Kinds  of Ill 

Locating 133,157,161 

Location  of 131, 134,  136 

Loss  Cause  by  Stoppage  of . .   469 

Maintenance  of 44 

Management  of 249,  250,  405 

Methods  of  Capitalizing 59 

"         "  Raising  Money  for  Construction  of . . .     30 

Military  Value  of 136 

Narrow  Gauge 143 

Operation  of— How  Affected 7 

Opposition  to — in  England 117 

Organization  of — under  Charter 156 

"  "        "      General  Law 157 

Origin  of 110 

Ownership  of — in  France 46,    47 

Owners  of 60,  61,    63 

Permanent  "Way  of — Primary  Purpose  of 110 

Political  Importance  of 135 

Poor 169,  170 

Productiveness  of 42 


INDEX.  523 

Railways,  Prosperous 169,  170 

Protection  of— from  Snow 302-305 

Rights  Accorded 45,    46 

Safety  Devices  of 36-38 

Securities  of 86 

Short— Construction  of. .  .* 170 

"          Speculative— Construction  of 171,  172 

Standard  Articles  Used  by 313 

u          —In  Different  Countries 178 

Status  of — In  Austria 49,  50 

"  Germany 48-50 

"       "       "  Holland 50 

"  Italy 50 

"  Russia 61 

"          the  Effect  of  a  Debased  Currency  Upon 7,    26 

—Their  Effect  on  the  Commercial  World 135 

Track  Accounts  of 284 

Unnecessary—Effect  of 170,  171 

Unproductive 31 

— Construction  of 43 

Use  of  Metals  by 320-322 

"     "  Wood  by 348-382 

Rates 135,  136 

"      Effect  of  Cost  of  Operation  on 466 

44  Management  on 57,    68 

44        "  Terminal  Expenses  on 411 

Freight— In  England 407 

Low— In  America 36,  146 

Reduced — Savings  from 35 

Reductions  in 42 

Upon  What  Dependent 136,  142 

Ratio,  between  Silver  and  Gold 12,  13 

44      Of  Cost  to  Gross  Earnings 144,  145 

Real  Estate,  Outlay  for 159 

44        "        Procurement  of 159,  160 

Purchase  of 172 

Recorder  of  Deeds 96 

Rectangular  Rail,  Thick— A.  D.  1838—  Illustration 224 

Redwood  Ties 350 

Reece,  Benjamin 306 

Reed,  H.  W 207,  356 

Reinforced  Rail  Joint— Illustration 338 

Registered  Bonds 97 

Relation  between  Track  and  Traffic 184-187 

Renewals,  Cost  of 423 

Repairs,  Freshet 285 

Of  Roadway  and  Track 284,  285 

Spring 239 

"       Winter 247 


524  INDEX. 

PAGE 

Rentals,  Payment  of 98 

Representatives  of  Investors 82-84 

Reserve  Fund 461,  462 

Resistance,  Comparative— on  Highways  and  Railways 113 

Returns— Railway 41 

"       Rendering 425 

Revenue,  Influences  Affecting 454 

Revetments 254 

Rewards 324,  325 

Right  of  Way,  Cost  of 45 

Ring,  Joint  and  Wedge— West  Jersey  Railroad— Illustration.  245 

"Riprap" 254 

Risk,  Premium  Paid  for 75 

Rivers,  Changes  in  Channels  of 163 

Roadbed 250,  251 

Chicago  &  North-Western  Railway 353 

"  "        — Illustration...  362 

Cost  of  Keeping  in  Order 422,  423 

Drainage  of 251-255 

Preparation  of 208 

Road  Crossings 256,  257 

Effect  of — on  Cost  of  Operation 394 

"         Maintenance  of 300 

u      Inspection  of . 248,  249 

Roadmaster 259 

Roadmaster's  Division 259 

Roads,  Tram Ill 

Roadway  and  Track,  Care  of 206-271 

"      Construction  of  206-271 

Cost  of  Repairs  and  Renewals  of 284 

Expenses  of — Due  to  Climatic  Causes. .  291 

"          "         "     "  Traffic 291 

Maintenance  of 206-271 

"          "      Material  Used  in  Repairs  and  Renewals 

of 284,  285 

Department,  Organization  of 258-260 

Rules  Governing 260-271 

"        Superintendent  of 259 

Rock  Cuts 226 

Rolling  Stock — Comparison  of  English  and  American 148 

"     Cost  of  Keeping  in  Repair  430, 431,  478,  479 

Romans,  Ratio  of  Silver  and  Gold  among  the 12 

Routes,  Surveys  of 157 

Royal  Commission  on  Railways 169 

Report  of 154 

Russia.  Gauge  Usod  in 194 

"        Status  of  Railways  in 51 

Rust,  Effect  of 272-279 

"     Preventionof ..,.273,274 


INDEX.  525 

Safety  Appliances— How  Looked  upon  by  Governments 38 

"        Devices 36-38 

Salts,  Metallic— Use  of 352 

Mineral— Use  of 361 

Sand  Ballast 373 

Savages,  Money  of 9 

Saw,  Track— Illustration 333 

Seal,Costof 166 

Section  Gangs.   238 

Sections,  Length  of 238 

Securities,  Discount  on. f 28 

Character  of  Different  Kinds  of 59-71 

Fluctuations  of 56 

in  Stocks 16 

Interest  on 28 

Issuing 53,    54 

Land 16 

— of  Prospective  Railways 31 

Railway— Fluctuations  in 42 

"       —Holders  of 54,    55 

"      — in  America 72,    73 

"      —Investments  in  Worthless 32 

11       —Precautions  to  Investors 79-84 

"      —Price  of 64 

"       —Purchase  of 64 

Sale  of , 158,  159 

Value  of— Upon  What  Dependent 102 

Services,  Legal— Expenditures  for 398 

Shareholders— (See  Also  "  Stockholders.") 81,    85 

Practice  of — in  America 81 

"        "      "  England 81 

Redemption  by 87 

Shares,  Classes  of 87,    88 

Different  Kinds  of 86 

Issue  of 66 

Issuing 30 

Par  Value  of 87 

Preference 88 

Sale  of 85 

Sheds,  Snow— Use  of 302-305 

Shimming 247,248,332 

Side  Tracks,  Use  of  Charges  for 407 

Signals : 2G2 

Signs,  Maintenance  of 300 

Sills,  Switch 228 

Silver 

*      Bullion 18 

Causes  of  Decline  in  Value  of 13 

"      Demonetization  of J 

"      Fluctuations  of 1° 


526  INDEX. 

Silver,  Ratio  of— to  Gold 12,    13 

u      Status  of— in  the  United  States 14 

Sinclair,  A 160 

Sinking  Funds,  Particulars  of 101-105 

Slag  Ballast 221,  222 

Sleepers,  Longitudinal 201,  202 

Slip  Switches 235,  236 

Slopes 225 

"      Drainage  of 226 

Protection  of 254 

Springs  on 226 

Snow,  Clearing  Track  of 285,  289,  301-305 

"      Fences,  Use  of 302-305 

"      Plows,  Use  of 302-305 

"      Shed  in  the  Sierra  Nevadas— Illustration 351 

"      Sheds,  Use  of 302-305 

Southern  Pacific  Railway 359 

Southwark  &  Deptford  Tramway  Company 454 

Spain,  Comparative  Value  of  Silver  and  Gold  in 13 

"     Gauge  Used  in 194 

"     Use  of  Metal  Ties  in 379 

Span,  Howe  Truss  Bridge—  Illustration 373 

Specifications  for  Ties 212,  213 

of  Cost,  for  Construction 131 

Speculation,  in  Railway  Construction  and  Operation 134 

Speculators,  Railways  Built  by 171,  172 

Spike,  Action  of— On  Tie— Illustration 321 

"      Track— Illustration 320 

Spikes 197.285,301,  330,  331 

Effect  of  Passing  Trains  on 329,  330 

"       Rectangular 198 

"      Wedge 198 

Spiking 211 

Damage  to  Ties  by 213,  214 

Splice  Bar,  Angle— A.  D.  1875— Illustration 293 

"      _A.  D.  1879— Illustration 296 

u         "         "     — A.  D.  1880— Illustration 298 

-      _ A.  D.  1885— Illustration . ...  303 

"     Double— A.  D.  1856— Illustration 262 

"         "          "       — A.  D.  1857— Illustration 269 

u    Plain— A.  D.  1870— Illustration 289 

"     Single— A.  D.  1855— Illustration 261 

Bars 285,  301,  341,  342 

"     Use  of 335-340 

Splices 215 

Split  Switch— Illustration 340 

"     Switches,  Three-way 233,  234 

Sprinkler,  Track— A.  D.  1851— Illustration 240 

Spring  Repairs 239 


INDEX.  527 

PAGE 

Springs,  Cost  of 403 

"         on  Slopes 226 

Stakes,  Engineers'— Care  of 244 

Stamp,  Government 10 

Standard  Rail,  A.  D.  1868— Illustrations 282,  284 

"    A.  D.  1870— I llustrations 28(5,  287,  288,  289 

"    A.  D.  1875— Illustrations 291,  292,  293 

"    A.  D.  1879— Illustrations 284,  297 

A.  D.  1880— Illustrations 298,  299 

A.  D.  1881— Illustration «  300 

A.  D.  1885— Illustrations 303 

A.  D.  1886— Illustration 305 

A.  D.  1887— Illustration 306 

A.  D.  1890—  Illustrations 323,  32  4,  325 

"    A.  D.  1897— Illustrations 345,  346 

"    of  Belgian  Government,  A.  D.  1889— Illustra- 
tion   310 

Track  of  Camden  &  Amboy  Railroad,  A.  D.  1837 

—Illustration 216 

Staple  Iron  Used  as  a  Makeshift  for  a  Frog,  Camden  &  Am- 
boy Railroad— A.  D.  1831— Illustration 201 

Station  Facilities 410,  411 

"  "          Cost  of , 45 

Stationary  Engines — for  Moving  Trains 120 

Steam  Ballast  Unloaders 258 

"      Derrick 258 

"      Ditchers 258 

Steel   Tie,  London  &  Northwestern   Railway— A.  D.   1885 

—Illustration 304 

"      Ties,  Use  of — in  Tropical  Countries 365,  366 

"      Truss  Bridge— Illustration 372 

Stephenson.  George 125 

Stephenson's  Fish-belly  Rail,  Manchester  &  Liverpool  Rail- 
way—A. D.  1829— 'Illustration 196 

"  Stevens  "  Rail 200 

"    A.  D.  1854— Illustration 244 

"    France— A.  D.  1888— Illustration 308 

u     Great  Western  Railway  of  England— A.  D. 

1858— Illustration 275 

"  "     Supported  by  Cast  Iron  Chair,  A.  D.  1837 

—Illustration 220 

"    Vicksburg  &  Jackson  Railroad— A.  D.  1841 

—Illustration 227 

u     Western    Railway    of    France— A.   D.    1855 

— Illustration 259 

RobertL 176 

Stock  Books,  Closing 89-91 

"      Capital 42,80,85-91,158 

—a  Basis  for  Taxation 446 

"  "       — Form  of  Certificate  of 87 


528  INDEX. 

PAGE 

Stock,  Capital— Meaning  of  the  Term 86 

Classes  of 88,  89 

Common 65-69,  88 

Debenture 42,  95 

Duplication  of 75 

Form  of  Transfer  of 90 

Issue  of 53-58,  76 

"  — In  England ...     73 

"  the  United  States 73 

Laws  Regulating  the  Issuance  of 78 

Ledger 89 

Preferred 65-69,  88 

—Rights  of  Holders 89 

Purchase  of— of  Other  Companies 75 

Rolling— Cost  of  Keeping  in  Repair 430,  431,  478.  479 

Transfers  of 89,  90 

"  Watered  " 34,  72-78 

—Its  Effect  on  Rates 77 

—What  it  Represents 75 

Stockholders.    (See  also  "  Shareholders  ") 81 

Meetings  of 90 

Stone  Arch  Culvert— Illustration 369 

Ballast 221 

"      Block,  Rail  and  Joint  Tongue  Laid  on  Camden  &  Am- 

boy  Railroad,  A.  D.  1831— Illustration 199 

Stringer  and  Strap  Rail,  Baltimore  &  Ohio  Railroad, 

A.  D.  1833— Illustration 208 

Use  of— in  Construction 129 

Strabo 12 

"Strap"  Rails 176 

Stringer,  Triangular,  A.  D.  1857— Illustration 265 

Structures,  Temporary— Cost  of 401,  402 

Street  Crossings 222,  223 

Superintendent  of  Roadway 259 

Supervisors,  Track 259 

Supplies,  Cost  of 395,  396 

"         Purchase  of 397,  398 

"         Inferior— Purchase  of 398 

Supports,  Rail 179 

Surfacing 285 

Surgeons,  Fees  of 398 

Surveys  of  Routes ' 157 

Swann,  John 85 

Switch,  Old-Fashioned— with  "Ball"  Counterweight— Illus- 
tration   328 

Switch  Sills 228 

"        Split— Illustra tion   340 

Stand,  Automatic  Safety— Illustration 336 

Switches..  ,..227,228 


INDEX. 


529 


PAGE 

Switches.Perailing. 237,  238 

"        In  Colliery  Railroads,  England,  A.  P.  1825— Illus- 
tration     194 

On  Outside  of  Curves 237 

'  Slip : 235,  236 

Three-Way  Split 233,  234 

System,  Block 38 

Premium 249 

Tamarack  Ties 350 

Tamping 216,  21 7,  254 

Tariffs,  Promulgation  of 425 

Taxation,  Committee  of  Railroad  Commissioners  on 441,  445 

Pifferences  in  Systems  of 440,  441 

Railway— Basis  of 433-457 

— Piscrimination  in 436,  444 

— In  Alabama 451 

Belgium 433,  434 

Pakota 452 

Georgia 450,  451 

Great  Britain 434,  435 

Illinois 440 

Iowa 439 

Kentucky 449,  450 

Louisiana 452 

Maryland 452 

Michigan 436,  438 

Minnesota 439 

Mississippi 451,  456 

Ohio 449 

Tennessee 449,  450 

the  United  States 435-453 

Vermont -  452 

Wisconsin 436, 437,  444 

True  Method  of 447-449 

Taxes 46, 47,  476,  477 

"       Pishursements  for 422 

"       Payment  of— By  Lessees 99 

Technical  Force 470 

Telegraph  Poles 354 

Tennessee,  Railway  Taxation  in  449 

Terminal  Charges 408,  409 

Expenses 409-411 

Facilities,  Cost  of 409 

Three-way  Split  Switches 233,  234 

Through  Plate  Girder  Bridge—  Illustration 376 

Tie,  Action  of  Rail  on— Illustration 321 

"         "       "  Spike  on— Illustration 321 

34    Vol.  3 


530  INDEX. 

PAGE 

Tie,  Cross— Whole  Log,  Hewn  Both  Sides— Illustration 214 

"    Metal— Midland  Railway  of  India— A.  D.  1889— Illustra- 
tion    311 

Plates 213 

"      Use  of ' 332,  333,  352,  372-374 

Steel— London  &  Northwestern  Railway— A.  D.  1885— 

Illustration 304 

T    s 255,  256 

Burnettized 359,  360 

Cause  of  Wear  of 333 

Cedar 350 

Chestnut 350 

Cost  of 280,  283 

"     "  Keeping  in  Order 422,  423 

"     "  Preserving 361-363 

Cross 179,  202 

"     —Split  Half  Log— Illustration 213 

Quarter  Log— Illustration 212 

Cutting  of— By  Rails 332 

Cypress 350 

Damage  to— By  Spiking 213,  214 

Deterioration  of 280-283 

Durability  of 334,  365 

Duration  of 281-283,  350 

Effect  of  Ballast  on 280-282 

"        "  Passing  Trains  on 329 

"   Traffic  on 282 

Hemlock 350 

Inferior— Use  of 400 

Kinds  of  Wood  Used  for 350 

Laying 211 

Life  of 282 

"     "  — How  Prolonged 350,  351 

Longitudinal 179,  201.  202 

—Use  of 318-320 

Maintenance  of 280-284 

Metal 202-204, 348,365-369 

—Advantages  of 366 

—Construction  of 367,  368 

—Corrosion  of 368 

—Cost  of 369 

—Durability  of 378 

— Fastenings  for 368 

— Requirements  of 381,  382 

—Use  of 177, 365-369 

"     "  in  Austria 378,  379 

"     "  "  Belgium- 377 

11  "  England 376 

"     "  "  France 376 

"     "  "  Germany 377,  378 


INDEX.  531 


PAGE 


Ties,  Metal— Use  of— in  Holland 377 

"          "     "  "  Hungary 378,  379 

"     u   "  Italy 379 

"  Portugal 379 

"  Spain 379 

"  Switzerland 379 

"     Number  of— Per  Mile  of  Track 350 

u     Oak 350 

"     Piling 371 

1     Pine , 350 

"     Redwood 350 

"     Relative  Deterioration  of 282 

"     Renewing 239,  240 

"     Seasoning 371,  372 

'     SoftWood 333 

"        "         "      — Cost  of 401 

k     Specifications  for 212,  213 

"     Steel— Use  of,  in  Tropical  Countries 365,  366 

Tamarack 350 

"     Treatment  of — in  France 355,  366 

"     White  Oak '. 281 

"     Wooden 180,  202 

—Increasing  Cost  of 138 

"     Worn-Out 400,  401 

Timber,  Causes  of  Decay  of 356 

"        Inspectors 259 

Tin 8 

Tools,  Renewals  for 399 

of  Trackmen 285 

Track 257,  258 

Town  Bonds 16 

Track  Accounts 206,  284 

Alignment  of 334 

Appliances,  Evolution  of 174, 199,  200 

"       Articles  Found  on 270 

*       Eo]t,— Illustration 323 

Camden  &  Amboy  Railroad,  A.  D.  1837— Illustration.  216 
—Rails  Laid    on    Piling 

Through  Marshes,  A.  D.  1837— Illustration 219 

"       Care  of 206-271 

"       Center  Bound 217 

Chicago  &  North- Western  Railway— Gravel  Ballast— 

Illustration 353 

Clearing— of  Snow 285,  289 

Construction  of 206-238 

"  — Principles  Governing 195,  196 

Curvature  of— Its  Effect  on  Cost  of  Operation 393 

"       Curved— Counteraction  of  Centrifugal  Force  on..  .187,  188 

"       Details 301-347 

"       Development  of  the , , , , , 190 


532  INDEX. 

Track  Drill— Illustration 330 

(Dust)  Sprinkler,  A.  D.  1851— Illustration 240 

"       Effect  of— on  Cost  of  Maintenance 399,  400 

Elasticity  of 179 

"         "  — How  Increased 369 

"      Employes,  Rules  Governing 260-271 

"       Expenses— Chargeable  to  Traffic 285-292 

Classification  of 287,  288 

Items  of— Their  Relation  to  Total   Track 

Expenses 491 

Fastenings 328-334,  341 

Foremen 310,  311 

Gauge — Illustration , 331 

Improvements  in 323,  324 

"       Improving— Points  to  Be  Considered 186,  187 

Inspection  of 248,  249 

Invention  of 175 

—Its  Construction  and  Evolution 174-205 

Jack— Illustration 332 

Joints 334-347 

"       Labor,  Items  of— Their  Relation  to  Each  Other 491 

Laying 207,209-211 

"        Gangs 209 

"       Level — Illustration 329 

"       Lining 217,  218 

Maintenance  of 206,  238-300 

"  —in  England 307-309 

"  —in  France 309,310 

Material— Preparing  for  Sunday  Work 241 

Metal— A.  D.  1889— Illustrations 314-319 

"    — Advantages  of 380 

"    —Midland  Railway,  A.  D.  1889— Illustration. . .  312 

"    —Queensland,  A.  D.  1889— Illustration 312 

"       Moorings  of 328 

Moving— During  the  Week.   246,  247 

"       — on  Sunday 245,  246 

Number  of  Ties  Per  Mile  of 350 

u       of  American  Railways 185 

Old— Moving 244 

"  —Renewing 239,  240 

Pennsylvania  Railroad— Illustrations 356-358,  361 

"       Preparing— for  Sunday  Work 244,  245 

"       Protection  of— From  Snow 302-305 

Quantity  of  Material  Required  to  Lay  One  Mile  of . . .  495 

Railway— First  Use  of 126 

Raising 216 

Relation  of— to  Traffic 184-187 

"       gaw — Illustration 333 

Section  of— New  South  Wales— Illustration 354 

Spike— Illustration 320 


INDEX.  533 

Track,  Standard — of  Different  Railways 178 

"       Tamping 216,  217 

Tools 1 257,  258 

Watchmen 248,  285 

Cost  of 289 

Trackmen.  Tools  of 285 

Trackwalkers 248 

Tracks,  Side — Charges  for  Use  of 407 

Traffic,  Adaptation  of  Equipment  to 168,  169 

"       Conditions  Attending 145 

"       Cost  of  Conducting 383 

"       Effect  of— on  Bridges 292-295 

"       "       "   Rails 278 

u   Ties 282 

Handling— Cost  of 409,  410 

Influence  of— on  Cost  of  Maintenance 383 

"      "  Operation 405 

"   Expenses 419-421 

"       Interstate 46 

Items  Chargeable  to '299,  300 

Local 410 

Passenger 113 

"       Relatioa  of  Construction  to 169 

"         "  —to  Expenditures 413-426 

Through 410 

"        —Settlements  for 407 

"       Track  Expenses  Chargeable  to 285-292 

T  Rail.  Boston  &  Worcester  Railroad,  A.  D.  1850— Illustra- 
tion  238 

T  Rail,  Long  Island  Railroad,  A.  D.  1855— Illustration 247 

u     "      Origin  of 176 

Train,  Construction 209 

"       Expenses / ". 414,  415 

"       Force 470 

"       Originof  the 176 

Trainmen,  Construction 209 

Trains.  Cost  of  Movement  of 414 

"       Early  Devices  for  Moving 120,121 

"       Jar  of— Effect  on  Bridges  and  Culverts 293 

Number  of 414 

Speed  of 135 

«      «  —Effect  on  Rails 276 

"       Weight  of— Effect  on  Bridges  and  Culverts 293 

Tram  Rail,  Surrey  Railway,  A.  D.  1803— Illustration 183 

"      with  Stone  Supports,  Upon  Which  Trevithick's 

First  Locomotive  Ran—  Illustration 186 

"      Roads 117 

Tramways 181 

Transfer  of  Stock,  Form  of 90 

Transportation,  Evolution  of 109 


534  INDEX. 

PAGE 

Treenails 197 

Trees,  Protection  of  Track  by 303 

Trespassers 267 

Trestles 129 

Trevithick 125 

Trimming 208,  209 

Truck,  Bogie .' 145,  149 

fi     — Advantages  of 114 

Trustees,  Mortgage 94 

"         Remuneration  of 425 

Sinking  Fund 102 

Tunnels,  Construction  of— in  America 188,  189 

Drainageof 226.  227 

Effect  of— on  Cost  of  Operation 394 

Ventilation  of 188,  189 

Turkestan 20 

Turn-out  Frog— Illustration 366 

Turnouts 229-232 

u         on  Curves 234 

Turntable— Illustration 370 

Tyndall 356 


Union  Pacific  Railway 361 

UnitofValue 8 

United  States,  Experience  of— in  Regard  to  Money 19 

Gauge  Used  in 194 

Government  Control  of  Railways  in 46 

National  Museum. 175 

Railway  Construction  in 129 

44         Management  in 57 

"  Taxation  in 435-453 


Vehicles,  Primitive— Gauge  of 190 

Venezuela 15 

Varnishes 481,  482 

Ventilation,  of  Tunnels 188,  189 

Vermont,  Railway  Taxation  in 45-2 

Viaducts,  Effect  of — on  Cost  of  Operation 394 

"  Vignoles  "  Rail 200 

Vulcanizing 374 


Wages 145,  415,  418-420 

Effect  of  the  Circulating  Medium  on 19,  21-23 

Warehouses,  Use  of— Charges  for  ...     406 


INDEX.  535 

Watchmen,  Track 348,  285 

u    —Cost  of 289 

"  Watered"  Stock 34,  72-78 

—Its  Effect  on  Rates 77 

— What  it  Represents 75 

Waterways 254 

Wedge  Spikes 198 

Weeds,  Cutting 240 

"       Removing 285 

Wheel,  Action  of— On  Rail  Joint— Illustration 339 

u       Base,  Rigid— Its  Effect  on  Maintenance 148 

Wheels,  Cost  of 403 

Defective 430 

"        Driving — Load  on 195 

Effect  of— on  Rails, 201 

"        Flanged — Introduction  of 177 

AVinter  Repairs 247 

Wisconsin  Railway  Taxation  in 436,  437,  444 

Wood, Economy  in  the  Use  of 349 

"      Kinds  of— Used  for  Ties 350 

Preservation  of 349-375 

"  — in  Europe 351 

"  India 352 

Preservatives 370-375 

Screws 197 

Substitutes  for 365, 369,  370 

"      Use  of— by  Railways 348-382 

"         "     " — in  Construction 129 

Wooden  Joint  Block,  New  Jersey  Railroad,  A.  D.  1860— Illus- 
tration    278 

Stringer  and  Strap  Rail,  Albany  &  Schenectady  Rail- 
road, A.  D.  1837— Illustration 223 

Ties 202 

Woodhouse's  Patent  Concave  Rail  for  Wagons,  A.  D.  1803— 

Illustration. 184 

Writers  on  Railway  Subjects 32,    72 

Wrought-Iron  Rails 178,  179 

Wyatt's  Hexagonal  Rail,  North  Wales,  A.  D.  1802— Illustra- 
tion...    181 


Yard  Facilities,  Cost  of 45 


Zeal— How  Heightened 325 

Zinc-Tannin  Process 361 


THE  SCIENCE  OF  RAILWAYS 


BY  MARSHALL  M.  KIRKMAN. 


1  THE  SCIENCE  OF  RAILWAYS  "  DESCRIBES  THE  METHODS  AND  PRINCIPLES  CON- 
NECTED WITH  THE  ORGANIZATION,  LOCATION,  CAPITALIZATION, 
CONSTRUCTION,  MAINTENANCE,  OPERATION  AND 
ADMINISTRATION  OF  RAILROADS. 


IN  TWELVE  VOLUMES,  COMPRISING  BOOKS  ON 

Railway  Equipment.  Fiscal  Affairs;  Collection  of  Revenue. 
Railway  Organization.  Fiscal  Duties  of  Agents  and  Con- 
Financing,  Constructing  and  Main-  Principles  Governing  Collection 

of  Revenue. 

Train  Service.  General  Fiscal  Affairs. 

Passenger, Baggage,  Express  and  Mail  General  Fiscal  Affairs  ant'   ota- 

Service.  tistics. 

Freight  Business  and  Affairs.  ^SjSf*1'   °f   EmPloves  of  Rail- 

Disbursements  of  Railways.  TrtStmvta-'m  offir>p 

ECU°sne00fiMatePrialhaSe'  ^  "^  ^Relief  Department  of  Rail- 

Fiscal  Affairs;  Expenditures.  Origin  and8  Evolution  of  Transporta- 

Economic  Theory  of  Rates;   Private  tion. 

versus  GovernmeutControl  of  Rail-  General   Index  or  Encyclopedia  of 

Toads.  Railways. 

"Your  books  dignify  our  calling  and  will  prove  of  permanent  value  to  the 
rank  and  file  of  railways."— JOHN  NEWELL,  late  President,  Lake  Shore  & 
Michigan  Southern  Railway. 

"I  shall  consider  the  books  a  valuable  addition  to  my  library,  covering,  as 
they  do,  so  many  of  the  various  branches  of  railway  science  from  the  stand- 
point of  one  who  has  so  many  years  of  practical  experience  in  dealing  with 
such  questions.  .  .  .  There  have  not  been  enough  of  such  works  by  those 
who  have  made  the  railroad  business  a  profession,  and  are,  therefore,  able  to 
view  the  railroad  science  from  a  practical  standpoint."— ROSWELL  MILLER, 
President,  Chicago,  Milwaukee  &  St.  Paul  Railway. 

M.  L.  SYKES,  a  director  and  highly  trusted  and  honored  executive  officer 
of  many  great  railroad  companies,  says:  "  You  have  done  a  service  to  the  rail- 
way world  which  will  long  survive  you.  .  .  .  The  whole  collection  is  fine, 
unique  and  not  comparable  in  its  scope  and  purpose  with  any  author's  writ- 
ings. .  .  .  The  illustrations  are  object  lessons,  pictorial  examples  of  the 
progress  of  man  connected  with  the  evolution  of  transportation,  and  the 
pages,  text,  pictures  and  ideas  are  highly  instructive  and  of  great  interest." 

"The  books  treat  in  a  novel,  clear  and  thorough  manner  a  vast  and 
interesting  topic,  which,  it  would  seem,  has  been  almost  entirely  neglected 
heretofore  by  scholars  and  writers.  As  a  concise  and  educational" production 
their  value  is  beyond  question.1'— CHARLES  M.  HAYS,  General  Manager,  Grand 
Trunk  Railway. 

"The  work  contains  much  useful  information  set  forth  in  a  very  interest- 
ing and  attractive  manner.  I  cheerfully  recommend  it  to  railroad  men  of  all 
grades."— J.  M.  GRAHAM,  Superintendent,  Baltimore  &  Ohio  Railroad,  Newark, 
Ohio. 

"  It  is  a  remarkable  work,  full  of  interest,  and  of  great  value  not  alone  to 
railway  men,  but  to  general  readers.  The  title  seems  to  me  a  misnomer. 
.  .  .  It  is  rather  the  '  Science  of  Transportation. '  .  .  .  It  is  systematic 
and  comprehensive,  betraying  intimate  knowledge  of  every  department  of  the 
transportation  business,  and  is  admirably  written.1' — MELVILLE  E.  STONE,  Gen- 
eral Manager  of  the  Associated  Press. 

"  A  writer  of  great  force  and  ability,  and  a  recognized  authority.  "—Station 
Agents'  Magazine. 

"  Written  with  force.  The  author  shows  a  thorough  knowledge  of  the 
complex  questions  involved."— Philadelphia  Press. 

"Should  be  in  the  hands  of  every  practical  railroad  man." — Buffalo  Ex- 
press. 

PUBLISHED  BY 

THE  WOBLD  BAIL-WAY  PUBLISHING  COMPANY, 
CHICAGO,  ILL. 


T    o  r 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 

Los  Angeles 
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